At the operating breakeven point, the sales revenue is equal to the sum of the fixed and variable operating costs.
True
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 both OPerating FIxed cost and operating Variable cost. Hence statment is True.
At the operating breakeven point, the sales revenue is equal to the sum of the fixed...
A firm's operating breakeven point is the level of sales necessary to cover all fixed 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
Fixed costs are $137,500 and variable costs are 45%. What is the breakeven sales revenue?
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,...
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...
Which of the following is true about the concept of leverage? O A. at the breakeven point, operating leverage is equal to zero. O B. combined leverage measures the impact of operating and financial leverage on EBIT. O C. financial leverage measures the impact of fixed costs on earnings. OD. none of the above Reset Selection
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...
Example 23: Fill in the effects of each of the following on breakeven point, operating income and net income using: I = increase, D = Decrease, NC = No Change. Breakeven point Operating Income Net Income Contribution Margin 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 price Increase units sold Decrease units sold Increase tax rate Decrease tax rate
sales revenue 780,000 variable costs 507,000 fixed costs 218,000 which of the following statements is true of the false volume increases by 14%. A. Operating income will increase by $38,220 B. Operating income will increase by $ 70,980 C. Fixed assets will increase by $30,520