Question: 6. If a company increases unit variable costs for its only product and all other things remain unchanged, then the breakeven quantity will increase. B.
6. If a company increases unit variable costs for its only product and all other things remain unchanged, then the breakeven quantity will increase. B. decrease. c. remain the same. More information is needed. 1. Operating leverage for ACDC Company is 3.5 for current sales of $100,000 and current net income of $20,000. Which of the following statements (I, II) is/are true? L. If sales increase by 2%, net income will increase by 7%. II. Current contribution margin is $70,000. A. B. C. D. Only statement I is true. Only statement II is true. Neither statement is true. Both statements I and II are true. 8. Bijou Museum sells 75% of its tickets for the regular price of $14. The remaining discount tickets are sold for the price of $10. Variable cost per guest is $2 for both groups, and fixed costs total $66,000 per month. What are the number of regular-price guests and discount guests at the breakeven point? Regular Discount A. 6,600 2,200 B. 6,000 2,000 c. 4,500 1,500 D. 4,125 1,375
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