to a whole number) must be sold in a. 5,000 b. 41,176 C47,059 d. 58,882 124. If
ID: 2406001 • Letter: T
Question
to a whole number) must be sold in a. 5,000 b. 41,176 C47,059 d. 58,882 124. If variable costs per unit would t increased because of an increase in hourly wage rates, the break-even point of a. decrease increase c. remain the same d. increase or decrease, depending on the a. total fixed costs increase percentage increase in wage rates 129. Which of the following conditions would cause the break-even point to unit selling price increases eunit variable cost-decreases incrSeS d. total fixed costs decrease 130. Charlotte Co. has budgeted salary increases to factory supervisors all other cost relationships are held constant, next year's break-even point totaling 9%. If selling prices and a. will decrease by 9% b. will increase by 9% c. cannot be determined from the data given d. will increase at a rate greater than 9% 32. If fixed costs are $850,000 and variable costs are 60% of sales, what is the break-even point ollars)? a. $2,125,000 b. $340,000 c. $3,400,000 d. $1,416,666 O'Boyle Co.'s fixed costs are $256,000, the unit selling price is $36, and the unit variable cos What is the break-even sales (units)? a. 12,800 units b. 4,571 units 16,000 units . 7,111 units c. Which of the following is not an assumption underlying cost-volume-profit analysis? The break-even point will be passed during the period. Total sales and total costs can be represented by straight lines. Costs can be accurately divided into fixed and variable components The sales mix is constant.Explanation / Answer
Answers
Correct answer is Option ‘b’ Increase.
The Break Even will increase because increase in variable cost = decrease in contribution margin per unit (denominator in calculating Break Even).
Correct answer is Option ‘c’ Unit Variable cost increases.
Same reason as mentioned in Question 124’s answer
Correct ANSWER is Option ‘b’ Break Even point will ALSO increase by 9%.
This is because Fixed cost is increasing by 9% and other things are staying the same.
Variable cost = 60% means CM Ratio = 40%
Break Even point = Fixed cost / CM Ratio = $ 850,000 / 40% = $ 2,125,000
Hence, correct answer is Option ‘a’: $ 2,125,000
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