Which of the following statement is true if the sales price per unit decreases while the variable cost per unit and total fixed costs remain constant?

Which of the following statements is true if the sales price per unit decreases while the variable cost per unit and total fixed costs remain constant? The contribution margin decreases and the breakeven point increases.

Which of the following changes to a company’s contribution income statement will always lower the break-even point?

Based on this information, the break-even point in units is: 50,000. Which of the following changes to a company’s contribution income statement will always lower the break-even point (either in units or in dollars)? Sales price increases by 10%.

When a company is operating at its breakeven point?

When a company is operating at its breakeven point: its total revenues will be equal to its total expenses. If a company sells one unit above its breakeven sales volume, then its operating income would be equal to: the unit contribution margin.

Which of the following formulas is used to calculate the contribution margin ratio multiple choice?

Explanation: Contribution margin = Total sales − Total variable costs.

Which of the following statements is correct with respect to variable cost per unit within the relevant range?

accounting1

Question	Answer
Which of the following statements is correct with respect to variable cost per unit, within the relevant range?	They will remain the same as production levels change
On a CVP graph, what does the horizontal line intersecting the dollar axis at the level of total cost represent?	Total fixed costs

Which of the following formulas is used to determine the break-even point when using the contribution margin method?

To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

How do you find the breakeven point on an income statement?

How to calculate your break-even point

1. How to calculate a break-even point based on units: Divide fixed costs by the revenue per unit minus the variable cost per unit.
2. When determining a break-even point based on sales dollars: Divide the fixed costs by the contribution margin.

Which of the following would cause the breakeven point to change?

The break-even point will increase by any of the following: An increase in the amount of the company’s fixed costs/expenses. An increase in the per unit variable costs/expenses. A decrease in the company’s selling prices.

Which of the following statements is correct with respect to total fixed cost within the relevant range?

The correct answer is A. They will remain the same as production levels change. Total fixed costs are costs that remain constant irrespective of…

Which of the following is the format of the income statement most useful in decision making?

the format of the income statements most useful in decision making is which of the following? contribution margin format.

How break-even point is determined?

In accounting, the breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production. The breakeven point is the level of production at which the costs of production equal the revenues for a product.

Which of the following is true at breakeven point?

The correct answer is ‘True. ‘ Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold. If revenues minus all expenses (fixed and variable, and including cost of goods sold) equals zero, you are at the break-even point.

What affects breakeven point?

Essentially breakeven is determined by two basic factors — anticipated revenue and projects costs of doing business. Revenue is largely affected by market demand. The more customers desire your products and services, the greater your sales volume and the sooner you can cover your business costs.

Which of the following is true of simple break-even analysis?

It is hard to determine which costs are fixed and which costs are variable. Which of the following is true of simple break-even analysis? It ignores the demand for a product.

Which of the following statement is correct with respect to fixed cost?

Which of the following would be included on an income statement?

Once referred to as a profit-and-loss statement, an income statement typically includes revenue or sales, cost of goods sold, expenses, gross profits, taxes, net earnings and earnings before taxes.