As sales exceed thebreak-even point, a high contribution-margin percentage A. in
ID: 2433393 • Letter: A
Question
As sales exceed thebreak-even point, a high contribution-margin percentage
A.
increases profits faster thandoes a low contribution-margin percentage
B.
increases profits at the samerate as a low contribution-margin percentage
C.
decreases profits at the samerate as a low contribution-margin percentage
D.
increases profits slower thandoes a low contribution-margin percentage
An increase in totalvariable cost usually indicates ___________.
A.
the cost-driver activity levelis decreasing
B.
the cost-driver activity levelis increasing
C.
variable cost per unit isdecreasing
D.
variable cost per unit isincreasing
_____ are a qualitative factor of a make-or-buydecision.
A.
Variable manufacturingcosts
B.
Avoidable costs
C.
Long-term relationships withsuppliers
D.
Opportunity costs
_____ old equipment is relevant in a decision to replaceequipment.
A.
Cost of
B.
Book value of
C.
Accumulated depreciationof
D.
Future maintenance costsof
As sales exceed thebreak-even point, a high contribution-margin percentage
A.
increases profits faster thandoes a low contribution-margin percentage
B.
increases profits at the samerate as a low contribution-margin percentage
C.
decreases profits at the samerate as a low contribution-margin percentage
D.
increases profits slower thandoes a low contribution-margin percentage
Explanation / Answer
As sales exceed the break-even point, a high contribution-marginpercentage A.increases profits faster than does a lowcontribution-margin percentage An increase in total variable cost usually indicates___________. D.variable cost per unit is increasing _____ are a qualitative factor of a make-or-buy decision. C. Long-term relationships with suppliers _____ old equipment is relevant in a decision to replaceequipment. D.Future maintenance costs of
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