If a company chooses to increase assembly line workers' pay (ie. increase variable costs), the total...
Homework Answers
a. Shift upward, and the slope will stay the same
Explanation:
A cost volume profit chart is also called as CVP chart, is a graphical representation of the cost-volume-profit analysis. In other words, it's a graph that shows the relationship between the cost of units produced and the volume of units produced using fixed costs, total costs, and total sales.
From the above diagram it is clear that total cos is the sum of variable cost and fixed cost, when ever variable cost of fixed cost changes total cost also change accordingly.
In case variable cost increase then the total cost also increases accordingly and vise versa. but the slope will stay the same, because total variable cost line and total cost line do not intersect. further if the total cost increases then the break even point also increases.
Add Answer to:
If
a company chooses to increase assembly line workers' pay (ie.
increase variable costs), the total...
If all investors become less risk averse, the security market line will Multiple Choice ecurity's risk...
If all investors become less risk averse, the security market line will Multiple Choice ecurity's risk premium will have the same intercept with a steeper slope; fall have the same intercept with a flatter slope; fall shift upward; rise shift downward; fall
UULUTUNS (12) In 2019, the director of an online accounting program decided to change her programs...
UULUTUNS (12) In 2019, the director of an online accounting program decided to change her programs business model. Instead of hiring Ph.D.-qualified instructors for each course, the director invested in a course designer. The course designer will receive an annual stipend for designing and maintaining the curriculum for the program. With a strong curriculum place, the director then plans to hire less qualified instructors at a cheaper cost per course. The director also plans to decrease tuition rates by 7%,...
If a company decreases both the variable expense per unit and total fixed expenses, while keeping...
If a company decreases both the variable expense per unit and total fixed expenses, while keeping selling price the same, which of the following is NOT true? A. The point at which the total expenses and total sales lines intersect will shift rightward B. The loss area will become smaller C. The total expense line will have a smaller y-intercept D. The total expense line will have a flatter slope
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling...
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling price would shift the break even sales point to the left An increase in unit variable costs would decrease the slope of the total costs line An increase in the unit selling price would shift the break-even sales point to the right All of the answers are correct QUESTION 4 Watson Company sells its product for $10 a unit. Next year, fixed expenses are...
The MCE exceeds the wage for a monopsony firm: A. because the government imposes higher costs...
The MCE exceeds the wage for a monopsony firm: A. because the government imposes higher costs on monopsony firms. B. the firm is the only seller of the good. C. because the monopsony firm faces a downward sloping demand curve for its product. D. a firm must pay a higher wage not just to an additional worker but to all other workers when a new worker is hired. Indifference curves relating wages to risk of injury are expected to be:...
25) Variable costs vary in total and vary per unit (within the relevant range). True False...
25) Variable costs vary in total and vary per unit (within the relevant range). True False 26) On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the line representing total costs (variable costs and fixed costs). True False 28. Depreciation expense on an office copier used by the CEO in the administrative building is a product cost and a noncash expense. True False 29. One disadvantage of top down budgeting is budgetary...
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by...
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $553 each. Costs 1. Plastic for casing-$21,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$7,000 4. Accounting staff salaries-$32,000 5. Drum stands (1,000 stands purchased) $40,000 6. Rent cost of equipment for sales staff-$36,000 7. Upper management salaries-$220,000 8. Annual flat fee for factory maintenance service-$14,000 9. Sales commissions $18 per unit 10. Machinery depreciation, straight-line-$47,000...
Compute the total of variable cost per unit and total fixed cost. Variable Cost per unit Fixed Costs: Utility $12,400...
Compute the total of variable cost per unit and total fixed
cost.
Variable Cost per unit Fixed Costs: Utility $12,400 3.00 Utility 10.50 Rent Direct Materials 36,000 14,000 $ 62,400 Direct Labor 4.50 Depreciation Total 18.00 Total USC has determined that the cost line for Utility Cost is 3x 12,400 y Prepare a C-V-P graph for USC. Use zero units and 7,000 units. Compute sales and total cost at those points Units 7,000 0 Sales Total Cost Include your graph...
1. Watertown Health System, a for-profit provider, has fixed costs of $2 million. Variable patient service...
1. Watertown Health System, a for-profit provider, has fixed costs of $2 million. Variable patient service costs are $10 per visit, and variable administrative costs are $5 per visit. Watertown is planning to contract with a local HMO, which has proposed an annual capitation payment of $150 per member for its population of 20,000 members. Based on an analysis of historical claims data, the HMO estimates that a member utilizes an average of 2 visits per year. The income tax...
QUESTION 3 Sales revenue is $7,000, total variable costs are 55.600, and total foxed costs are...
QUESTION 3 Sales revenue is $7,000, total variable costs are 55.600, and total foxed costs are $1,000. How much sales revenue does a firm need to achieve tarpet profit of $2,500? A $17.500 B. $12.500 C. $5,000 D. Not enough information QUESTION 4 Which of the following is most likely to be a variable cost? A Rent for CEO's office B. Depreciation on production equipment Cost of merchandise D. Factory supervisor's salary QUESTIONS Gamma Company has a selling price of...
If all investors become less risk averse, the security market line will Multiple Choice ecurity's risk premium will have the same intercept with a steeper slope; fall have the same intercept with a flatter slope; fall shift upward; rise shift downward; fall
UULUTUNS (12) In 2019, the director of an online accounting program decided to change her programs business model. Instead of hiring Ph.D.-qualified instructors for each course, the director invested in a course designer. The course designer will receive an annual stipend for designing and maintaining the curriculum for the program. With a strong curriculum place, the director then plans to hire less qualified instructors at a cheaper cost per course. The director also plans to decrease tuition rates by 7%,...
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling price would shift the break even sales point to the left An increase in unit variable costs would decrease the slope of the total costs line An increase in the unit selling price would shift the break-even sales point to the right All of the answers are correct QUESTION 4 Watson Company sells its product for $10 a unit. Next year, fixed expenses are...
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $553 each. Costs 1. Plastic for casing-$21,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$7,000 4. Accounting staff salaries-$32,000 5. Drum stands (1,000 stands purchased) $40,000 6. Rent cost of equipment for sales staff-$36,000 7. Upper management salaries-$220,000 8. Annual flat fee for factory maintenance service-$14,000 9. Sales commissions $18 per unit 10. Machinery depreciation, straight-line-$47,000...
Compute the total of variable cost per unit and total fixed
cost.
Variable Cost per unit Fixed Costs: Utility $12,400 3.00 Utility 10.50 Rent Direct Materials 36,000 14,000 $ 62,400 Direct Labor 4.50 Depreciation Total 18.00 Total USC has determined that the cost line for Utility Cost is 3x 12,400 y Prepare a C-V-P graph for USC. Use zero units and 7,000 units. Compute sales and total cost at those points Units 7,000 0 Sales Total Cost Include your graph...
1. Watertown Health System, a for-profit provider, has fixed costs of $2 million. Variable patient service costs are $10 per visit, and variable administrative costs are $5 per visit. Watertown is planning to contract with a local HMO, which has proposed an annual capitation payment of $150 per member for its population of 20,000 members. Based on an analysis of historical claims data, the HMO estimates that a member utilizes an average of 2 visits per year. The income tax...
QUESTION 3 Sales revenue is $7,000, total variable costs are 55.600, and total foxed costs are $1,000. How much sales revenue does a firm need to achieve tarpet profit of $2,500? A $17.500 B. $12.500 C. $5,000 D. Not enough information QUESTION 4 Which of the following is most likely to be a variable cost? A Rent for CEO's office B. Depreciation on production equipment Cost of merchandise D. Factory supervisor's salary QUESTIONS Gamma Company has a selling price of...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago