ALL ONE QUESTION!

. A 10% increase in fixed expenses would increase the contribution margin per unit by 10% do you agree with this statement? Why or why not? (4 points)

Explain how break-even units of sale would change when per unit price increases by 5% and variable expenses per unit decrease by more than 5%. (4 points)

. What is the main difference between absorption costing and variable costing methods when we calculate per unit product cost? (4 points)

The degree of operating leverage of company A is higher than company B. If sales decrease by 10% for each company, then which company would have higher net operating income and why? (4 points)

. Suppose a company sold only 40% of total units of products it manufactured in 2020. Then which one of the costing systems absorption based or variable costing would make higher net operating income? Explain why. (4 points)

P IC a 3 3 1 2 3 T 4 ** 6 7 : "A 10% increase in fixed expenses would increase the contribution margin per unit by 10%" - do you agree with this statement? Why or why not? (4 points) Explain how break-even units of sale would change when per unit price increases by 5% and variable expenses per unit decrease by more than 5%. (4 points) What is the main difference between absorption costing and variable costing methods when we calculate per unit product cost? (4 points) The degree of operating leverage of company A is higher than company B. If sales decrease by 10% for each company, then which company would have higher net operating income and why? (4 points) Suppose a company sold only 40% of total units of products it manufactured in 2020. Then which one of the costing systems - absorption based or variable costing - would make higher net operating income? Explain why. (4 points) IE