(Solution) If A Company Decreases Its Fixed Costs For Producing Its Only Product And All Other Things Remain Unchanged, Then Sales Revenue Per Unit At The... | Snapessays.com

(Solution) If a company decreases its fixed costs for producing its only product and all other things remain unchanged, then sales revenue per unit at the...

8 multiple choice questions thats from my accounting homework. Really would appreciate the help1. If a company decreases its fixed costs for producing its only product and all other things

remain unchanged, then sales revenue per unit at the breakeven point will

A.

increase.

B.

decrease.

C.

remain the same.

D.

2. Worst Appliances provided the following information about its operations:

\$10 per unit

\$16 per unit

Prime Costs

\$8 per unit

Fixed Manufacturing Costs

\$900,000

\$600,000

What is the contribution margin ratio if the company sells its only product for \$80 each?

A.

67.5%

B.

57.5%

C.

42.5%

D.

32.5%

3. ComCom Company has fixed costs that total \$1,225,000 per month. The selling price for

its only product is \$70, and the unit variable cost is \$45. How much revenue must

ComCom generate to earn \$840,000 in operating income next month?

A.

\$8,260,000

B.

\$5,782,000

C.

\$2,352,000

D.

\$2,065,000

4. On a CVP graph, the total cost line intersects the total revenue line at the

A.

breakeven point.

B.

origin.

C.

level of the fixed costs.

D.

level of the variable costs.

5. If a company increases unit variable costs for its only product and all other things remain

unchanged, then the breakeven quantity will

A.

increase.

B.

decrease.

C.

remain the same.

D.

Solution details:
STATUS
QUALITY
Approved

This question was answered on: May 23, 2022

Solution~00021147719248.zip (25.37 KB)

This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

May 23, 2022

EXPERT

Tutor