Which of the following would decrease unit contribution margin the most? (Hint: assume amounts, then simulate each condition/option independently. 15% decrease in selling price 15% increase in selling price 15% decrease in variable costs and expenses 15% increase in variable costs and expenses Group of answer choices 1 2 3 4
Q: Currently, the unit selling price is $34, the variable cost is $14, and the total fixed costs,…
A: Contribution per unit=Sale per unit-variable cost per unit=$34-$14=$20
Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…
A: Actual sales = OMR 490000 Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable…
Q: Suppose that products A, B, Cnd D have price elasticity of demand coefficients of 0.67, 1.24, 2.01…
A: Price elasticity is a measure of responsiveness of a product to its price rise. If the price is…
Q: What is the effect in contribution margin ratio if both selling price and variable costs are…
A: Formula: Contribution margin = sales - variable cost
Q: Suppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select…
A: Answer -The company should lower the prices to raise revenues. Since 0<E(p)<1, demand is…
Q: Company XYZ expects the profit for next year to be higher than this year's profit. Assume that the…
A: When a company expects that they will achieve a higher profit in the next year or expects a…
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Q: Which alternative has the lowest break-even quantity
A: Break-Even quantity is the measure of units that must be produced and sold such that the revenue is…
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A: Solution- External cost=$3 Efficient quantity= 500 Because External cost of $3 raises the supply…
Q: If Actual sales are OMR 480000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…
A: SOLUTION CONTRIBUTION MARGIN PER UNIT = SELLING PRICE PER UNIT - VARIABLE PRICE PER UNIT . SALES…
Q: not lower a company's break-even point?
A: Option A is wrong because an increase in selling price will lower the break-even point. Option B is…
Q: All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a…
A: Contribution margin is the excess of selling price per unit over variable cost per unit.
Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…
A: Answer
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Q: Which of the following would produce the largest increase in the contribution margin per unit?…
A: Contribution margin per unit is calculated by subtracting the variable cost from the selling price…
Q: 1. Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: 1. BREAK EVEN POINT : = FIXED COST / CONTRIBUTION MARGIN PER UNIT 2. MARGIN OF SAFETY : =…
Q: All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a…
A: An increase in sales and variable cost with the same value decreases the contribution margin ratio…
Q: 14. If the fixed expenses of a product increase while variable expenses and the selling price…
A: CVP analysis is used widely in cost and management accounting to know the change in costs of the…
Q: Company XYZ expects the profit for next year to be lower than this year's profit. Assume that the…
A: If the selling price per unit, variable cost per unit and total fixed costs remained the same, the…
Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…
A: Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable cost per unit = OMR 35 Actual…
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A: Contribution margin: It is calculated by subtracting the variable cost from the selling price.
Q: 2. Given the following information: The ratio of variable cost per unit divided by selling price per…
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A: Correct option is Break even point = fixed cost /…
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Which of the following would decrease unit contribution margin the most? (Hint: assume amounts, then simulate each condition/option independently.
- 15% decrease in selling price
- 15% increase in selling price
- 15% decrease in variable costs and expenses
- 15% increase in variable costs and expenses
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- Translate the following monetary payoffs into utilities for a decision maker whose utility function is described by an exponential function with R = 250: –$200, –$100, $0, $100, $200, $300, $400, $500.Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 350 If there is an external cost of $3, what is the efficient quantity? 500 (already answer) If there is an external benefit of $3, what is the efficient quantity? 700 (already answer) For the remaining questions assume that there is a $3 external COST. If the government wants to get the efficient quantity with a per/unit tax, how much should the tax be? 3 (already answer) Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the…Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 35 For the questions assume that there is a $3 external COST. 1. Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the market is perfectly competitive and that "one allowance" lets you produce one unit of the good.) 2. What will they be worth if the quantity is capped at 500? 3. What if it is capped at 700?
- What is the effect in contribution margin ratio if both selling price andvariable costs are increased by 10% and the fixed costs remain the same?1. Increase by 10%2. Increase by 5%3. Decrease4. Remains the same what is the best answer? another answer for this questionIf, Total Fixed cost OMR 40000, Selling price per unit OMR 30, and Variable cost per unit OMR 12, what is Margin of safely at a profit of OMR 12000? Select one: a. OMR 20000 b. OMR 30000 c. None of the options d. OMR 40000The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative S1 S2 S3 d1 200 150 150 d2 250 150 100 The probabilities for the states of nature are P(s1) = 0.55, P(s2) = 0.25, and P(s3) = 0.2. (a) What is the optimal decision strategy if perfect information were available? S1 : S2 : S3 : (b) What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place. (c) Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? If required, round your answer to one decimal place. (d) What is the expected value of perfect information? If required, round your answer to one decimal place.
- What is the effect in contribution margin ratio if both selling price andvariable costs are increased by 10% and the fixed costs remain the same?1. Increase by 10%2. Increase by 5%3. Decrease4. Remains the same what is the best answer? another answer for this.Exercises + Suppose that we made an AHP analysis based on the following comparison tables Value R1 R2 R3 R1 1 9. R2 1 R3 1 Cost R1 R2 R3 R1 1 1/7 1/5 R2 1 1/9 R3 1 1) Draw the value cost diagram from these tables 2) From the diagram, rank the requirements according to their priorities starting from the highest priority Dr. Quta Shambour PArt Requirciments AnalyHow much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000
- Henderson Farms reports the following results for the month of November: Sales (10,000 units) Variable costs Contribution margin Fixed costs Net income $600,000 1. 420,000 180,000 110,000 $70,000 Management is considering the following independent courses of action to increase net income. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66% of sales. 3. Reduce fixed costs by $10,000.Refer to the following payoff table (values are profit): State of Nature Alternative S1 S2 A1 75 −40 A2 0 100 Prior Probability 0.6 0.4 What is the expected payoff of the decision strategy (i.e. using the EMV/EP criterion)?sde • The most likely strategy to reduce the break-even point should be to 1. Increase fixed costs 2. Decrease selling price 3. Increase variable costs 4. Increase selling price O 1 O 2 O 3 O 4 Question 20 • In break-even analysis, which of the following is not an assumption over the relevant range 1. Unit selling price are constant 2. Unit variable costs are constant 3. Total costs are constant 4. Total fixed costs are constant O 1 O 2 O 3 04 MacBook Pro