If a company decreases the variable expense per unit while increasing the total fixed expenses, the...

If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will:

shift upward and have a steeper slope.

shift downward and have a steeper slope.

shift upward and have a flatter slope.

shift downward and have a flatter slope.

Expert Solution

Solution:

Answer : Option with "shift upward and have a flatter slope." is the Correct Option.

Explaination:

When there will be rise in fixed cost the Total expenses will be shift upward and decrease in variable cost will counter equate the the line in respect with fixed cost , and therefore the slope will get flatter. Therefore option with Shift ypwrd and have flatter slope will be the correct option.

ekkarill92 answered 2 years ago

show the fixed cost are fixed in total but is variable on a per unit basis...

show the fixed cost are fixed in total but is variable on a per unit basis and that variable in total but is fixed on a per unit basis

The current sales of a company are 5000 units at $65 per unit. Total variable expenses...

The current sales of a company are 5000 units at $65 per unit. Total variable expenses and fixed expenses are $200,000 and $104,800 respectively. If sales unit increase by 4% and fixed expenses remain unchanged, estimate the percentage change in net operating income. a. 80.16% b. 24.75% c. 25% d. 4%

1) If the selling price per unit is? $100, total fixed expenses are? $600,000, and the...

1) If the selling price per unit is? $100, total fixed expenses are? $600,000, and the breakeven sales in dollars is? $800,000, what is the variable expense per? unit? 2) Mama's Favorite Appliances manufactures two? products: Food Processors and Espresso Machines. The following data are? available: Food Processors Espresso Makers Sales price ?$125 ?$225 Variable costs ?$50 ?$150 The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The? company's production capacity is?...

Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.

__________________________________________________________________________ Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350. What is Pearson's total contribution margin? What is the breakeven in terms of units for Pearson? What is Pearson's net income? __________________________________________________________________________ Ava’s Creations sells two products. A and B. The weighted average per unit is $40 and Ava’s fixed costs are $24,800. The sales mix is 30% for A and 70% for B. How many units of...

A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed...

A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed costs per year are $1000, including depreciation expense of $200. What is the cash flow breakeven point in units and in dollars? A. 400 units and $2000. B. 267 units and $1333. C. 500 units and $2500. D. 333 units and $1665.

Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses...

Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $25,830 in the first quarter, and $5,100 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $42,100 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2017. Quarter 1 2 3 4 Year Variable expenses $ $ $ $ $ Fixed expenses Total selling and administrative expenses...

Madison Company produces a single product which sells for $30 per unit. Fixed expenses total $13,500...

Madison Company produces a single product which sells for $30 per unit. Fixed expenses total $13,500 per month, and variable expenses are $12 per unit. During the current month, sales, in units, totaled 900 units. Using the information above, match each of the items listed below with the appropriate amount. - Contribution margin per unit. - Contribution margin ratio. - Break-even point in units. - Break-even point in dollars. ...

Madison Company produces a single product which sells for $40 per unit. Fixed expenses total $9,000...

Madison Company produces a single product which sells for $40 per unit. Fixed expenses total $9,000 per month, and variable expenses are $25 per unit. During the current month, sales, in units, totaled 750 units. Using the information above, match each of the items listed below with the appropriate amount. - A. B. C. D. E. F. G. H. I....

Madison Company produces a single product which sells for $80 per unit. Fixed expenses total $18,000...

Madison Company produces a single product which sells for $80 per unit. Fixed expenses total $18,000 per month, and variable expenses are $44 per unit. During the current month, sales, in units, totaled 700 units. Using the information above, match each of the items listed below with the appropriate amount. 1.Contribution margin per unit. 2.Contribution margin ratio 3.Break-even point in units. 4.Break-even point in dollars. 5.Total contribution margin at the break-even point. 6.Net income during the current month. 7.Margin of...

What are the company's variable expenses per unit?

Steeler Corporation is planning to sell 100,000 units for $2.00 per unit and will break even at this level of sales. Fixed expenses will be $75,000. What are the company's variable expenses per unit? a) $0.75 b) $1.00 c) $1.25 d) $1.10

Question