All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease? Select one: O a. None of the given answers. O b. Both unit contribution margin and contribution margin ratio increase. O c. Unit contribution margin decreases and contribution margin ratio decreases. O d. Both unit contribution margin and contribution margin ratio are unchanged. O e. Unit contribution margin increases while contribution margin ratio decreases

Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…

A: This option is False A. If only the fixed cost decreases but the number of units sold and unit…

Q: Which of the following is correct? The break-even point occurs when: Select one: a. total variable…

A: Break even point is the point where the production level at which the production costs equal to the…

Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…

A: Contribution margin = Sales price per unit - Variable cost per unit   Therefore, there is no impact…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…

A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…

Q: . The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c.…

A: The question is related to Marginal Costing and is of cost volume profit analysis.

Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…

A: The Margin of Safety is the difference between the Budgeted Revenues and Breakeven Revenues.…

Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…

A: The contribution margin decides which product gives more profits to the company. The contribution is…

Q: Which of the following statements about CVP analysis is true? O a. Operating income calculations in…

A: CVP is also known as Cost volume relationship which says that how much sales and  profits will…

Q: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution margin per unit is the sales revenue over and above variable costs in the business.…

Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: The break-even point is where total sales equal total variable costs. True B) False

A: Break-even point is the point at which company’s revenues which are earned during the year are equal…

Q: If the sales price and the variable cost per unit both increase by 12% and the fixed cost does not…

A:

Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…

A: At break-even point, there is no profit or no loss.

Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…

A: Contribution margin is referred to as that portion of sales revenue which is not absorbed by the…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: Which of the following is true regarding the contribution margin ratio of a company that produces…

A: Contribution margin ratio =Contribution per unitSales price per unit Contribution per unit = Sales…

Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…

Q: Contribution margin per unit is the amount by which a product's unit selling price exceeds its…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.

Q: If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in…

A: Lets understand the basics. Variable cost ratio is a ratio which indicates the variable cost in…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)

Q: In the CVP analysis, Which of the following statements about the breakeven point is true? a.…

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: If the number of units produced decreases, which of the following is true? answer choices…

A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…

Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…

A: Break even point is total fixed cost divided by contribution margin per unit. So break-even point…

Q: Which of the following is true? O Variable costs minus the fixed costs equals net income. O Total…

A: The income is calculated as excess of revenues over expenses.

Q: When the level of output increases within the relevant range, _____.   a.fixed cost per unit does…

A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…

Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…

A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…

Q: The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin…

A:

Q: 4. Which of the following statements is correct? a. Gross margin and contribution margin are the…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…

Q: Which of the following is true of the contribution margin ratio?       a.If the contribution margin…

A: The contribution margin indicates the excess of revenue over its variable cost. It also indicates…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Break Even Point is a point where unit sold gives no profit or loss to the firm.  Beyond Break Even…

Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…

A: The contribution margin represents the portion of sales that is left after the deduction of variable…

Q: Which of the following statements is not correct? All other things remaining the same A. equal…

A: The Break-even point helps the production department for calculating the level of production…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Break Even Point is a point at which firm incurred no loss and earned No Profit.  Break Even Point…

Q: The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the…

A:

Q: If the total contribution margin increases and fixed costs do not change, then net income can be…

A: The CVP or cost volume profit analysis helps in determining the effect of changes in the sales price…

Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…

A: "Since you have asked multiple question we will solve the first question for you.  If you want any…

Q: Once the break-even point is reached, which of the following statements is false? Select one: O None…

A: Break-even point is the point where the total cost is equal to total sales so we can say that…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: The Break-even point is the point where all the sales generated by the company are equal to the cost…

Q: What is happening to average costs when marginal cost is greater than average cost at a specific…

A: When marginal cost is greater than average cost (including average variable cost or average total…

Q: Which of the following is true regarding the contribution margin ratio of a company that produces…

A: Contribution margin ratio=Contribution per unitSales price per unit Contribution per unit = Sales…

Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…

A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…

Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…

A: Break even point can be referred to as a sales level at which the firm is just able to recover all…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.