Reference no: EM132968147

Problem1 : Jacob is a manager in a bakery. He is considering expanding his dessert line to include gluten-free options. Which of the following is relevant to Jacob's use of break-even point information?

Option 1: Jacob knows he can only sustain a loss for two months.
Option 2: Jacob knows that he currently can only produce 80 units per week.
Option 3: Jacob knows that demand will only be 100 units per week.
Option 4: Jacob wants to know projected gross margin.

Problem2 : Which of the following statements are accurate about cost-volume-profit analysis? (Check all that apply.)

Option 1: When the sales price increases, the break-even point decreases.
Option 2: When the variable cost per unit increases, the break-even point increases.
Option 3: When the total fixed costs increase, the break-even point decreases.
Option 4: When the variable cost per unit increases, the break-even point decreases.