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Which of the complying with statements is correct with regard to a CVP graph?a. A CVP graph reflects the maximum possible profit.b. A CVP graph reflects the break-also suggest as the interarea of the total sales revenue line and also the total expense line.c. A CVP graph assumes that total cost varies in straight proportion to unit sales.d. A CVP graph shows the operating leverage as the gap in between full sales revenue and also complete price at the actual level of sales.
A CVP graph mirrors the break-also point as the intersection of the full sales revenue line and the total expense line
If both the solved and also variable expenses connected via a product decrease, what will certainly be the impact on the contribution margin proportion and also the break-even allude, respectively? a. Decrease...........Increaseb. Increase...........Decreasec. Decrease...........Decreased. Increase...........Increase
Which of the complying with is true about the contribution margin proportion of a single product company?a. As solved expenses decrease, the contribution margin proportion boosts.b. The contribution margin ratio multiplied by the marketing price per unit amounts to the contribution margin per unit.c. The contribution margin ratio will decline as unit sales decrease.d. The contribution margin proportion equates to the selling price per unit much less the variable price ratio.
The contribution margin ratio multiplied by the marketing price per unit equals the contribution margin per unit
The margin of safety can be calculated by:a. Sales - (Fixed expenses/Contribution margin ratio).b. Sales - (Fixed expenses/Variable cost per unit).c. Sales - (Fixed costs + Variable expenses).d. Sales - Net operating revenue.
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At the break-also point:a. sales would be equal to contribution margin.b. contribution margin would be equal to net operating earnings.c. sales would be equal to resolved costs.d. contribution margin would certainly be equal to resolved prices.
Escareno Corporation has actually provided its contribution format income statement for June. The firm produces and also sells a single product.Sales (8400 units).......$764,400Variable prices......445,200Contribution Margin=319,200Fixed Expenses...........250,900Net Operating Income=$68,300If the firm sells 8,200 units, its total contribution margin have to be closest to:a. $311,600b. $301,000c. $319,200d. $66,674
Tee Times, Inc., produces and sells the best quality golf clubs in every one of Bulloch County. The agency expects the complying with revenues and prices in 2004 for its Elite Quality golf club sets:Revenues (400 sets sold) $240,000Variable expenses 160,000Fixed prices 40,000How many type of sets of clubs need to be marketed for Tee Times, Inc., to reach their breakalso point?a. 400 b. 250 c. 200 d. 150
Tee Times, Inc., produces and also sells the best top quality golf clubs in all of Bulloch County. The firm expects the following profits and also costs in 2004 for its Elite Quality golf club sets:Revenues (400 sets sold) $240,000Variable prices 160,000Fixed prices 40,000How many type of sets of clubs need to be marketed to earn a taracquire operating revenue of $90,000?a. 700 b. 650 c. 500 d. 400
Cobble Corporation produces and also sells a single product. Documents concerning that product appear below:Selling Expense...... Per Unit=$160 %of sales=100%Variable Expenses..Per Unit=$48 %of sales=30%Contribution Margin====== $112 ========70% Fixed expenses are $499,000 per month. The firm is currently marketing 5,000 systems per month. The marketing manager would favor to reduced the selling price by $13 and also rise the declaring budgain by $33,000 per month. The marketing manager predicts that these two changes would certainly increase monthly sales by 900 systems. What should be the in its entirety effect on the company"s monthly net operating earnings of this change?a. boost of $56,100b. boost of $99,300c. decrease of $8,900d. decrease of $56,100