Question

In: Accounting

1) Sales above the break-even point will result in net profit equal to ____ A) a...

1) Sales above the break-even point will result in net profit equal to ____

A) a number of units above break-even times sales price per unit

B) number of units above break- even times variable cost per unit

C) number of units above break even times contribution margin per unit

D) number of units above break even times fixed cost per unit

2) An increase in inventory will result in ____ net operating income when using absorption costing as opposed to variable costing.

A) lower

B) higher

C) equal

3) fill in the blanks with increase, decrease or remain the same

A) fixed cost per unit will ______ with an increase in sales volume (within the relevant range)

B) a decrease in the contribution margin will cause the break-even point to _____

C) variable cost per unit will _____ with a decrease in sales volume

D) an increase in fixed costs will cause the break even point to ______

E) an increase in sales volume (within the relevant range) will cause total fixed costs to _______.

Expert Solution

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1) Sales above the break-even point will result in net profit equal to ____

C) number of units above break even times contribution margin per unit

2) An increase in inventory will result in ____ net operating income when using absorption costing as opposed to variable costing.

B) HIGHER

3) fill in the blanks with increase, decrease or remain the same

A) fixed cost per unit will ______ with an increase in sales volume (within the relevant range)

DECREASE

B) a decrease in the contribution margin will cause the break-even point to _____

INCREASE

C) variable cost per unit will _____ with a decrease in sales volume

REMAIN SAME

D) an increase in fixed costs will cause the break even point to ______

INCREASE

E) an increase in sales volume (within the relevant range) will cause total fixed costs to _______.

REMAIN SAME

ekkarill92 answered 1 year ago

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