Which of the following is not a step in calculating the breakeven point? A. Put everything...
Which of the following is not a step in
calculating the breakeven point?
A. Put everything into “constant” form – sales price per unit, variable cost per unit, total fixed cost.
B. Solve by dividing total fixed cost by contribution margin per unit.
C. Calculate the contribution margin per unit.
D. Subtract fixed cost from sales revenue.
Homework Answers
| Answer is D. Subtract fixed cost from sales revenue as explained below | |
| Statement showing Computations | |
| Particulars | Amount |
| Sales price per unit | xxxx |
| Less Variable cost per unit | xxxx |
| Contribution per unit = SP - VC | xxxx |
| Fixed Costs | xxxx |
| breakeven point = Fixed costs/ Contribuiton per unit | xxxx |
| Thus D. Subtract fixed cost from sales revenue is not a step in calculating the breakeven point |
Add Answer to:
Which of the following is not a step in
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Which of the following changes would cause a company’s breakeven point in sales to increase? A-The company’s variable cost per unit decreases. B-The company’s contribution-margin rate increases. C-The company’s total fixed costs increases. D-The company’s selling price per unit increases.
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Which of the following changes would cause a company’s breakeven point in sales to increase? A) The company’s total fixed costs increases. B)The company’s variable cost per unit decreases. C) The company’s contribution-margin rate increases. D) The company’s selling price per unit increases.
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Which of the following equations provides the breakeven point in units? (Here, Be refers to breakeven,...
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Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and...
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Example 48: Fill in the effects of each of the following on breakeven point, operating income...
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Jake's Pet Supplies: Please see highlighted Table yellow portion: Need: Multiproduct Breakeven point: in units and...
Jake's Pet Supplies:
Please see highlighted Table yellow portion:
Need: Multiproduct Breakeven point: in units and sales revenue
at break even and target profit point for Product 1, Product 2 and
the totals
Land it $6.00 60% Jake's Pet Supplies Pro Forma Contribution Margin Income Statement For the month ending June 30 ASSUMPTIONS Product 31: Launch-it Sales price per unit $10.00 Variable costs per unit: Sales comission $1.00 Purchase price $1.00 Shipping and handling Total variable cost per unit $4.00...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio,...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs. At the breakeven point, total sales revenue equals total costs. If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant.
Only Answer Exercise 2 and 3 please. After completing Exercise 2, What is the number of...
Only Answer Exercise 2 and 3 please. After completing Exercise
2, What is the number of units needed to achieve the desired
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After completing Exercise 3- situation 1, what is the number
of units needed to achieve the desired profit?
See circle on the photos below for exercise 2 and 3
Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per...
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Jake's Pet Supplies:
Please see highlighted Table yellow portion:
Need: Multiproduct Breakeven point: in units and sales revenue
at break even and target profit point for Product 1, Product 2 and
the totals
Land it $6.00 60% Jake's Pet Supplies Pro Forma Contribution Margin Income Statement For the month ending June 30 ASSUMPTIONS Product 31: Launch-it Sales price per unit $10.00 Variable costs per unit: Sales comission $1.00 Purchase price $1.00 Shipping and handling Total variable cost per unit $4.00...
Only Answer Exercise 2 and 3 please. After completing Exercise
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After completing Exercise 3- situation 1, what is the number
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See circle on the photos below for exercise 2 and 3
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