if the number of units decreases, fixed cost per unit decreases
Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…
A: Contribution margin = Sales price per unit - Variable cost per unit Therefore, there is no impact…
Q: :The change in total cost from producing another unit of output equals the following Average total…
A: The marginal cost of production is the change in total production cost that comes from making or…
Q: cost which remains constant per unit
A: Variable costs are costs that change according to the level of activity. But, variable cost per unit…
Q: When the volume of production decreases, fixed cost per unit will____ a. Increases b. Constant c.…
A: Fixed cost is indirect cost that incur at all the level of production
Q: Fixed cost per unit of output decreases as volume increases. True or False True False
A: Any organization generally have two types of expenses - Fixed costs and variable costs. Fixed costs…
Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin: This is the difference between sale price and variable cost per unit. This…
Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…
A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…
Q: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit…
A: Contribution margin per unit is the sales revenue over and above variable costs in the business.…
Q: when the contribution margin ratio increases
A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…
Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…
A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.
Q: What effect does an increase in volume have on—c. Total fixed costs?
A:
Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…
A: Total fixed cost remains same at all level of output.
Q: breakeven point increases
A: Break even point is the minimum units required to be sold before beginning to generate profit. Break…
Q: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…
A:
Q: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…
A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…
Q: Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output…
A: There are two cost fixed cost and variable cost. Cost per unit depends on fixed and variable costs…
Q: 4. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio.
Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: If the variable cost per unit goes down, Contribution margin Break-even point a. increases…
A:
Q: 1. Total variable cost is affected by changes in activity and per unit variable cost is constant
A: Total Cost Consists of Two Components which is Fixed cost and Variable cost. The Behavior of these…
Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will…
A:
Q: decrease in variable cost
A: Break even point is the level of sales at which an entity begins to generate profit. Break even…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…
A: Fixed costs are those costs which do not change with change in level of activity. For example,…
Q: Which of the following is true of a variable cost? Total variable cost remains constant with…
A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…
Q: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…
Q: If the number of units produced decreases, which of the following is true? answer choices…
A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…
Q: When volume of production decreases fixed cost per unit will
A: We know: Fixed Cost remains constant at all levels of production. Fixed cost per unit = Fixed Cost…
Q: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…
A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…
Q: What effect does an increase in volume have on—a. Unit fixed costs?
A: Fixed costs are those costs of business which remain fixed in total irrespective of change in volume…
Q: When the level of output increases within the relevant range, _____. a.fixed cost per unit does…
A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…
Q: The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin…
A:
Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…
A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…
Q: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…
A: Variable costs: Variable costs are those costs that change in proportion to change in the production…
Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: The formula for Contribution margin per unit is : =Sales Revenue per unit - Variable Cost per unit…
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…
A: Option c is the answer.
Q: How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b.…
A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…
Q: When production increases, the total fixed cost will
A: Fixed cost is a type of costs which remains fixed irrespective of production levels. Whether…
Q: The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the…
A:
Q: All else being equal , what happens to the unit contribution margin and the contribution margin…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: In the fixed cost per unit does the it increase as activity decreases and will decrease as activity…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…
A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…
Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…
A: Break even point can be referred to as a sales level at which the firm is just able to recover all…
if the number of units decreases, fixed cost per unit decreases
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- When the level of activity decreases, variable cost will increase or decrease ?In the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?What happens to average fixed cost as more products are made? a. Remains the same b. Increases c. Decreases d. Fluctuates
- Which of the following describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing productionWhile the total amount of fixed cost changes with the level of production, fixed cost per unit remains constant as volume changes. True O FalseAs volume increases, which of the following statements is NOT correct? Variable cost per unit will remain the same. Total variable costs will increase. Total fixed cost will remain the same. Average cost per unit will increase. O
- When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unitWhen fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution marginWhen the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the same