Which statements is true for break-even point is reached

Assignment Help Managerial Accounting
Reference no: EM132610440

Question 1: Once the break-even point is reached, which of the following statements is true?

Option 1: Operating income will increase by the unit contribution margin for each additional item sold

Option 2: Variable expenses will remain constant in total

Option 3: The total contribution margin changes from negative to positive

Option 4: The contribution margin ratio begins to decrease

Reference no: EM132610440

Questions Cloud

Find which costs will change with a decrease in activity : Find Which costs will change with a decrease in activity within the relevant range? Total fixed costs and total variable costs./ Unit fixed cost
When implementing policies and standards : When implementing policies and standards, building consensus amongst organizational stake holders is important.
What do you like or dislike about the inforgraphic : Critique the infographic. What do you like or dislike about the inforgraphic and why? Are there any free templates for creating an infographic.
How much must you save each month : You are currently 25 years old and would like to retire at 65. How much must you save each month to retire with $1.0 million
Which statements is true for break-even point is reached : Once the break-even point is reached, which of the following statements is true? The total contribution margin changes from negative to positive
Propose minimum of two alternatives to avoid the deadly sin : Share your perspective when you are at a presentation when the deadly sin is committed. Propose a minimum of two alternatives to avoid the deadly sin.
How the implementation of a standard costing system : How the implementation of a standard costing system can be useful to improve PGI's performance if the problems faced by PGI can be identified
Compute the Effective Annual Rate on the credit card : A credit card charges an Annual Percentage Rate (APR) of 0.16 with 12 monthly payments. Compute the Effective Annual Rate (EAR) on the credit card
How as the management accountant may contribute : How, as the management accountant, you may contribute to the design and operation of the new management accounting systems for the College.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd