False,
Breakeven volume is the volume where Revenue is equal to variable and fixed cost
At what level of quantity company is no loss no profit.
A Question 1 The breakeven volume is the quantity for which the variable cost and revenue...
At the operating breakeven point, the sales revenue is equal to the sum of the fixed and variable operating costs. True False
The breakeven sales volume of the Sonoma Co. is 650,000 units. If the variable cost per unit increases by $15.00 and the selling price per unit increases by S25.00 next year, then the new breakeven point will be O The same O Higher O Lower O Cannot be determined.
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...
uces 10,000 units/month. Find breakeven level if FC- $85,000 /month, revenue (8 Marks) Question 5:i) A plant units/mont is S6/unit and variable cost is $4/unit. Determine expected monthly profit or loss Solution: Perform a make/buy analysis where the common variable is X, the number of units produced each year. AW relations are: Aw,make=-18,000(A/P, 15%,6) Away =-1.SX +2,000(A/F,15%,6)-04X Draw the diagram showing the breakeven point and which alternative should be selected if production level (12 Marks) is less than breakeven quantity?...
Question 1: CVP relation Sales volume in units 100 Revenue $8,000 Variable costs $7,000 Contribution margin $1,000 Fixed costs $600 Profit $400 a) Compute the following items: price= unit VC= unit CM= b) Write down the CVP relation. Profit = * volume- (e.g., if Profit=4*volume-1000, enter 4 in the first box and 1000 in the second box). c) Predict profit at sales volume of 120 units: d) Your boss gave you a profit target of $700. How many units do...
Question 11 Economic profit equals total revenue minus total costs including explicit fixed costs, explicit variable costs, implicit fixed costs, and implicit variable costs. True False Question 12 4 pt If Economic profit equals zero, then the firm should shut down in the short run and go out of business in the long run. True e False The period of time long enough to allow a firm to vary all of its inputs, to adopt new technology, and to increase...
Question 10 (Mandatory) (1 point) The single-price monopolist produces the quantity of output at which marginal cost equals marginal revenue and charges a price that is greater than marginal revenue. True False
tep24730991 Question 1: CVP relation Sales volume in units 100 Revenue $5,000 Variable costs $2,000 Contribution margin $3,000 Fixed costs $1,800 Profit $1,200 a) Compute the following items: price unit VC- unit CM= b) Write down the CVP relation. Profit #volume - (e.g., if Profit=4*volume-1000, enter 4 in the first box and 1000 in the second box). c) Predict profit at sales volume of 120 units: d) Your boss gave you a profit target of $2,100. How many units do...
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.
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 If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs