Which of the following equations provides the breakeven point in units? (Here, Be refers to breakeven,...
Which of the following equations provides the breakeven point in units? (Here, Be refers to breakeven, SP refers to selling price, VC refers to variable costs, FC refers to fixed costs and CM refers to contribution margin)
A. BE units =(SP-VC) ÷ FC per unit
B. VC per unit +FC= SP per unit x BE units
C. BE units =FC÷CM per unit
D. SP per unit + VC per unit = FC÷ BE units
Homework Answers
| Break even point in unit sales=(Fixed cost/Contribution margin per unit) | |||||||
| Contribution margin per unit=Sales price per unit-Variable cost per unit | |||||||
| Ans C ) | BE units = FC ÷CM per unit | ||||||
| A,B and D are incorrect answers | |||||||
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Which of the following equations provides the
breakeven point in units? (Here, Be refers to breakeven,...
me > My courses ACCT-103-30889-201806> Topic 4 Decision-Making Tools > Test 4A Question 2 Natyst answered...
me > My courses ACCT-103-30889-201806> Topic 4 Decision-Making Tools > Test 4A Question 2 Natyst answered Paints oue of 100 r Flag question Break-even in units equals: (SP- Selling price. VC- Variable Cost per Unit. FC- Total Fixed Costs, CM- Contribution Margin per unit) Select one: OB. FC/CM e . ?.FCNC D. CM/FC e here to search
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300,000 Coolvision Company manufactures sunglasses. Last year, the company sold 30,000 of these sunglasses, with the following Sales (30,000 sunglasses).. $750,000 Variable expenses ........ 450,000 Contribution margin Fixed expenses ..... 210,000 Net operating income... $ 90,000 Required: 1. What is the contribution margin ratio? 3 marks ii. What is the breakeven point in units? 3 marks iii. What is the breakeven point in dollars? 3 marks CVP Formula ---- 1. Unit CM = Selling Price - VC per unit 2....
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me > My courses ACCT-103-30889-201806> Topic 4 Decision-Making Tools > Test 4A Question 2 Natyst answered Paints oue of 100 r Flag question Break-even in units equals: (SP- Selling price. VC- Variable Cost per Unit. FC- Total Fixed Costs, CM- Contribution Margin per unit) Select one: OB. FC/CM e . ?.FCNC D. CM/FC e here to search
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...
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