Question: An increase in variable cost results in (a) Increase in P/V ratio (b) Increase in profit (c) Decrease in contribution (d) Decrease in profit Ans:

An increase in variable cost results in

(a) Increase in P/V ratio

(b) Increase in profit

(c) Decrease in contribution

(d) Decrease in profit Ans: (c)

Step by Step Solution

★★★★★

3.34 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Management Cost Accounting Questions!

Q:

A bus company is responsible for offering public transportation in the suburbs of a large metropolitan area. The company has significant data management requirements: It needs to keep track of its...

Q:

I If the image is not clear please Click Show transcribed image text QUESTION 21 If seat turnover increases, average check also increases, assuming total revenue remains unchanged. O True False...

Q:

1. In 2012, Stallman Co. had a break-even point of $800,000 based on a selling price of $10 per unit and fixed costs of $240,000. In 2013, the selling price and variable costs per unit did not...

Q:

1. In 2012, Stallman Co. had a break-even point of $800,000 based on a selling price of $10 per unit and fixed costs of $240,000. In 2013, the selling price and variable costs per unit did not...

Q:

Which of the following would produce no change in the contribution margin per unit? Select one: a. A 15% decrease in selling price. b. None of the given of answers. O c. A 14% increase in variable...

Q:

In a CVP analysis, assuming constant sales volume, what will be the effect on unit contribution margin and fixed costs if the selling price decreases while the unit variable cost increases? UCM Fixed...

Q:

Hello, I need help with 2 problems in the spreadsheet provided below. The tabs are P8-2A, P8-4A. P8-2A Round all calculations to two decimal places (a) Compute the markup percentage and target...

Q:

Q1. If direct materials cost per unit decreases, the amount of sales necessary to earn a desired amount of profit will decrease. a. true b. false Q2. Which of the following describes the behavior of...

Q:

Table of Contents Case Overview .. Problem Statement . Cost-Volume-Profit Analysis.. .3 Present scenario: The agents commission rate remains unchanged at 15%.. .3 Alternative-1: The agents commission...

Q:

Which costs that you should be considered and included in your analysis when deciding on a future course of action: a) Relevant cost b) Irrelevant cost c) Actual cost d) Standard cost 8. An increase...

Q:

wnload Great Tamale Handout.doc (86.5 KB) Page of 12 Alternative 2 - Restaurant Nathan and Cody notice there is stiff competition in the food cart and food truck industries and therefore are...

Q:

(Comprehensive 2-Year Worksheet) Lemke Company sponsors a defined-benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2010 and 2011. (a)...

Q:

The graph below shows the angular velocity o as a function of time t for a point on a rotating object. 2.5 1.5 0.5 3. -0.5 8. 6. 10 -1 -1.5 At which of the following times will the point have the...

Q:

1 . ) Everything else equal, how would each of the following factors affect the market value of a stock? Indicate by a plus ( + ) , minus ( ) , or zero ( 0 ) if the factor would increase, decrease,...

Q:

What is a barricade situation? Discuss the various strategies for dealing with hostage takers.

Q:

Describe the difference between a direct materials efficiency variance and a variable manufacturing overhead efficiency variance?

Q:

Describe the difference between a direct materials efficiency variance and a variable manufacturing overhead efficiency variance?

Q:

Describe the difference between a direct materials efficiency variance and a variable manufacturing overhead efficiency variance?

Q:

eBook Problem Walk-Through A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D 1 = $2.75), and it should continue to grow at a constant rate of 3% a year. If its required...

Q:

strimko solver

Q:

Suppose you purchase twelve call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.30. If, at expiration, the stock is selling for $71 per share, what are your call...