A firm's operating breakeven point is the level of sales necessary to cover all fixed operating costs.
True
False
False.
OPerating Break even point means sales need to cover operating Variable cost as well as operating Fixed cost.
In the given statment they covered only OPerating FIxed cost and ignored operating Variable cost. Hence statment is False.
A firm's operating breakeven point is the level of sales necessary to cover all fixed operating...
At the operating breakeven point, the sales revenue is equal to the sum of the fixed and variable operating costs. True False
For sales levels below the operating breakeven point, sales revenue exceeds total operating costs, and earnings before interest and taxes is greater than zero. True False
In finding the operating breakeven point, it is important to divide the cost of goods sold and operating expenses into fixed and variable operating costs. True False
D Question 3 3 pts The breakeven point in sales is the fixed cost divided by the contribution margin per unit. True O False D Question 4 3 pts The margin of safety equal actual sales-breakeven sales O True O False 3 pts D Question 5 D Question 5 3 pts machine hours can be used as an allocation base for calculating the pre determined rate True ○ False 3 pts D Question 6 rates are assigned to An unfavorable...
A firm has fixed operating costs of $150,000, total 18. sales of $1,500,000, and total variable costs of $1,275,000. With this data, the firm's operating breakeven point during the year, in dollars, is $150,000 $176,471 $1,000,000 $1,425,000 а. b. C.
If a company is currently operating at its breakeven point, which of the following statements is true? Multiple Choice 1 0 if fixed costs increase, net income will decrease by the contribution margin ratio times the amount of the increase in fixed costs. 0 if sales increase by 20%, net income will also increase by 20%, assuming that fixed costs are not equal to zero. 0 if variable costs double, net income will decrease by 50%. 0 if sales decrease,...
QUESTION 27 When sales dollars increase, the net income of a company with a high degree of operating leverage will increase more quickly than in a company with a lower operating leverage. However, when sales dollars decrease, the net income of a company with a high degree of operating leverage will decrease more quickly than in a company with a lower operating leverage. True O False QUESTION 28 Jen & Berry's currently sells 100,000 pints of ice cream per month...
46-49. Wheaten Enterprises, Ine. has fixed operating costs of $150,000, the selling price per unit of its product is $150, and its variable cost per unit for this product is S110. a. Calculate the firm's operating breakeven point in units b. What is the firm's breakeven point in sales dollars?
Cover Rugs is holding a 2-week carpet sale at Jackie's Club, a local warehouse store. Cover Rugs plans to sell carpets for $700 each. The company will purchase the carpets from a local distributor for $420 each, with the privilege of returning any unsold units for a full refund. Jackie's Club has offered Cover Rugs two payment alternatives for the use of space. (Click the icon to view the additional information) Read the requirements Requirement 1. Calculate the breakeven point...
Example 48: Fill in the effects of each of the following on breakeven point, operating income and net income using: 1 = increase, D = Decrease, NC = No Change. Breakeven point in units Net Income Breakeven point in dollars Operating Income Contribution Margin in dollars Contribution Margin Ratio Increase variable costs per unit Decrease variable costs per unit Increase variable costs in total Decrease variable costs in total Increase fixed costs Decrease fixed costs Increase selling price Decrease selling...