When the variable cost per unit (v) increases but the fixed cost (FC) and the revenue...
When the variable cost per unit (v) increases but the fixed cost (FC) and the revenue per unit (r) remain constant, then:
Question 17 options:
|
The break-even point moves to the left. |
|
|
The break-even point stays in the same place. |
|
|
The break-even quantity increases. |
|
|
The break-even quantity decreases. |
Homework Answers
Ans- (D)
As average variable cost
increases,average total cost also increases ,so quantity will
decrease at the breakeven point as shown in the figure. Breakeven
point is the point at which P= Atc
Add Answer to:
When the
variable cost per unit (v) increases but the fixed
cost (FC) and the revenue...
MULTIPLE-CHOIC 4-1 If the variable cost per unit goes Break-even point increases. decreases. decreases. increases remains...
MULTIPLE-CHOIC 4-1 If the variable cost per unit goes Break-even point increases. decreases. decreases. increases remains unchanged Contribution margin a. increases b. increases c. decreases d. decreases e. decreases 4.2 The amount of revenue required to earn a targeted profit is equal to total fixed cost divided by contribution margin. a. total fixed cost divided by the contribution margin ratio. targeted profit divided by the contribution margin ratio. d. total fixed cost plus targeted profit divided by contribution margin ratio....
QUESTION 2 If a company expects revenues to decline, management should attempt to convert its variable...
QUESTION 2 If a company expects revenues to decline, management should attempt to convert its variable costs into fixed costs. True False QUESTION 3 Assume Phony Company has variable costs per unit of $23, fixed costs of $600,000, and a break-even point in units of 60,000 units. If the sales price per unit decreases by $4 and the variable cost per unit decreases by $4, what would happen to the break-even point? O A. Break-even point in dollars decreases and...
7.If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and...
7.If the variable cost per unit increases by $1, spending on
advertising increases by $1,250, and unit sales increase by 150
units, what would be the net operating income?
8.What is the break-even point in unit sales?
9.What is the break-even point in dollar sales?
10.How many units must be sold to achieve a target profit of
$8,400?
11.What is the margin of safety in dollars?
12.What is the margin of safety percentage?
13.What is the degree of operating leverage?...
What happens to total variable cost, variable cost per unit, total fixed cost, and fixed cost...
What happens to total variable cost, variable cost per unit, total fixed cost, and fixed cost per unit when activity level increases AND decreases?
Question 12 As production increases, the fixed cost per unit increases O decreases remains the same...
Question 12 As production increases, the fixed cost per unit increases O decreases remains the same either increases or decreases, depending on the variable costs
A firm manufactures a product that sells for $ 12 12 per unit. Variable cost per...
A firm manufactures a product that sells for $ 12 12 per unit. Variable cost per unit is $ 7 7 and fixed cost per period is $ 1900. $1900. Capacity per period is 700 700 units. Perform a break-even analysis showing a detailed break-even chart. Find the revenue function, TR. TR equals = nothing (Type an expression using x as the variable. Do not include the $ symbol in your answer.) Find the cost function, TC. TC equals =...
A factory has a capacity of 2,100 units per month. The fixed cost is $400,000 per month
A factory has a capacity of 2,100 units per month. The fixed cost is $400,000 per month. The variable cost is $100 per unit, and the selling price is $250 per unit 1-The break-even point in number of pumps per month is _______ 2-The revenue at the break-even point is _______ $ 3-The profit at the plant capacity is _______ $ 4-The percentage reduction that will occur in the break-even point if the fixed cost is reduced by 18% and unit variable cost by...
Within the relevant range, as the number of units produced increases: the variable cost per unit...
Within the relevant range, as the number of units produced increases: the variable cost per unit will increase O the fixed cost per unit will decrease O total variable costs will remain the same O total fixed costs will decrease
Nicolas Enterprises sells a product for $55 per unit. The variable cost is $34 per unit, while fixed costs are $37,044....
Nicolas Enterprises sells a product for $55 per unit. The variable cost is $34 per unit, while fixed costs are $37,044. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $62 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $62 per unit units
3. provide the break-even chart for: Revenue (price) = $10/item Variable cost = $8/item Fixed cost...
3. provide the break-even chart for: Revenue (price) = $10/item Variable cost = $8/item Fixed cost = $200 Revenue: Y = 10X VC: Y = 8X FC: Y = 200 Profit = revenue - (total cost) 4. provide the break-even chart for: revenue (price) = $15/item variable cost = $20/item fixed cost = $1000 revenue: Y = 15X VC: Y = 20X FC: Y = 1000 Profit = Revenue - (total cost)
MULTIPLE-CHOIC 4-1 If the variable cost per unit goes Break-even point increases. decreases. decreases. increases remains unchanged Contribution margin a. increases b. increases c. decreases d. decreases e. decreases 4.2 The amount of revenue required to earn a targeted profit is equal to total fixed cost divided by contribution margin. a. total fixed cost divided by the contribution margin ratio. targeted profit divided by the contribution margin ratio. d. total fixed cost plus targeted profit divided by contribution margin ratio....
QUESTION 2 If a company expects revenues to decline, management should attempt to convert its variable costs into fixed costs. True False QUESTION 3 Assume Phony Company has variable costs per unit of $23, fixed costs of $600,000, and a break-even point in units of 60,000 units. If the sales price per unit decreases by $4 and the variable cost per unit decreases by $4, what would happen to the break-even point? O A. Break-even point in dollars decreases and...
7.If the variable cost per unit increases by $1, spending on
advertising increases by $1,250, and unit sales increase by 150
units, what would be the net operating income?
8.What is the break-even point in unit sales?
9.What is the break-even point in dollar sales?
10.How many units must be sold to achieve a target profit of
$8,400?
11.What is the margin of safety in dollars?
12.What is the margin of safety percentage?
13.What is the degree of operating leverage?...
Question 12 As production increases, the fixed cost per unit increases O decreases remains the same either increases or decreases, depending on the variable costs
Within the relevant range, as the number of units produced increases: the variable cost per unit will increase O the fixed cost per unit will decrease O total variable costs will remain the same O total fixed costs will decrease
Most questions answered within 3 hours.
-
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 10 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 41 minutes ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 4 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 4 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 4 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 5 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago