You are watching: If all other factors are constant, any decrease in fixed costs will decrease the breakeven point.
If all other factors are constant, any type of decrease in fixed expenses will to decrease the breakeven point.True or False
The contribution margin ratio defines the percentage of every sales disagreement thatA. Contributes towards duration expensesB. Contributes towards fixed costs and also generating a profitC. Contributes in the direction of sales revenueD. Contributes towards variable costs
If the variable price per unit rises while the sale price every unit and total fixed prices remain constant, which of the following statements is true?A. Breakeven allude in units increasesB. Breakeven suggest in units stays the sameC. Breakeven allude in systems decreasesD. Contribution margin ration increases
Companies v high operation leverages typically have lower fixed costs than change costs.True or False
Total contribution margin less total fixed expenses equalsA. Gross profitB. Sales revenueC. Operation incomeD. Contribution margin ratio
The breakeven suggest can either be calculate in state of number of units or in terms of sales revenue.True or False
Bottles R us Bottling firm provides the complying with information around its solitary product. Targeted operation income- $653,700Selling price per unit- $7.15Variable cost per unit- $4.80Total resolved cost- $133,245How many units have to be offered to earn the targeted operation income? (Round the last answer up to the nearest unit.)A. 334,871B. 278,170C. 56,700D. 65,853
I scream For ice Cream sells specialty ice cream in 3 flavors: Rocky Road, Peanut Butter, and also Fruity Tooty. It offered 16,000 gallons last year. Because that every five gallons of ice cream sold, one gallon is Fruity Tooty and the remainder is separation evenly between Peanut Butter and also Rocky Road. Fixed costs for ns Scream For ice Cream space $50,750 and extr information follows:Sales price every gallon: RR($6.50) PB($9) FT($7)Variable expense per gallon: RR($5.75) PB($3) FT($3)The breakeven sales volume in gallons for i Scream For ice Cream isA. 10,150B. 4,721C. 14,500D. 4,571
Medoc agency provides the adhering to information about its solitary product. Targeted operating income $53,420Selling price per unit $6.15Variable price per unit $4.50Total fixed cost $69,135What is the breakeven suggest in units? (Round intermediary calculations come the nearest cent.)A. 5,016B. 6,492C. 41,900D. 32,376
A product is marketed at $40 every unit, the variable expense per unit is $20, and total fixed costs are $200,000, what space the breakeven sales in dollars?A. $100,000B. $105,000C. $400,000D. $5,000
The fixed prices of Greg"s Snowboards space $810,000. The selling price because that one snowboard is $170. The variable expense per unit is $51. If the company sells 9,100 snowboards, that is operating earnings is a A. Get of $272,900B. Obtain of $1,201,100C. Acquire of $1,892,900D. Ns of $345,900
The following selected data publication to environment-friendly with Envy Corporation:Total fixed prices $30,000Selling price per unit $21Variable costs per unit $12Assuming 8,700 units room sold, what is the donation margin?A. $108,300B. $78,300C. $48,300D. $182,700
Richland Enterprises has budgeted the following quantities for its following fiscal year:Total fixed costs $47,000Selling price per unit $65Variable costs per unit $15If Richland Enterprises can reduce fixed expenses by $27,000, just how will breakeven sales in units be affected?A. Rise by 338 unitsB. Increase by 540 unitsC. Decrease by 540 unitsD. Diminish by 338 units
The exact same CVP formulas that are used to carry out CVP analysis for a agency with a solitary product can be used for any company that sells an ext than one product, as lengthy as a agency uses the weighted average contribution margin of all products, quite than the donation margin that a sole product.True or False
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