15 all other things the same, a decrease in variable
expense per unit will reduce the break-even point.
true, false
Break Even Point ( in Units )
= Fixed Costs / Contribution Margin per unit
Contribution margin per unit
= Selling Price per unit – Variable costs per unit
As we can find, if variable cost per unit reduces, the contribution margin per unit will increase which will result in fall in break even point assuming fixed cost and selling price remains the same
So, as per above discussion, the statement in the question is True
15 all other things the same, a decrease in variable expense per unit will reduce the...
All other things remaining the same, technological innovation will reduce the price level in the short run but it will not have any effect on the price level in the long run. True False
1) 2) 3) 4) 5) If variable costs per unit decreased because of a decrease in utility rates, the break-even point would Oa. decrease Ob. increase Oc. remain the same Od. increase or decrease, depending upon the percentage increase in utility rates If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? Oa. 0.0 Ob. 1.3 Oc. 7.5 Od. 2.0 If fixed costs are $561,000 and the unit contribution margin...
QUESTION 9 Boomerang company sells a product at $100 per unit that has unit variable costs of $30. The company's break-even sales point in sales dollars is $150,000. How much profit will the company make if it sells 4,000 units? A. $120,000 B. $70,000 C.$175,000 D. $215,000 QUESTION 10 To find the break-even point for a company that sells several products, the analyst must make an assumption about what the sales mix will be and calculate a weighted average contribution...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed costs increase to $900,000, and the selling price does not change, what is the break-even point in units?
Mauro Products distributes a single product, a woven basket whose selling price is $26 per unit and whose variable expense is $19 per unit. The company's monthly fixed expense is $14,000. Required: 1. Calculate the company's break even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales?
Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $14,400 Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $120,000 O b. $100,000 O c. $200,000 O d. $90,000 ge Next page
TRUE/FALSE Write 'T' if the statement is true and 'F' if the statement is false. 1) The degree of operating leverage in a company is smallest at the break-even point and increases as sales rise. _______ 2) The break-even point in units can be obtained by dividing the unit contribution margin by the total fixed expenses. _______ 3) An increase in the number of units sold will decrease a company's break-even point. _______ 4) The margin of safety is the...
Mauro Products distributes a single product, a woven basket whose selling price is $15 per unit and whose variable expense is $12 per unit. The company's monthly fixed expense is $4,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? baskets 1. Break-even point in unit sales 2....