Question: Which of the following would trigger a larger decrease in unit contribution margin : a 5% decrease in the selling price or a 5% decrease

Which of the following would trigger a larger decrease in unit contribution margin: a 5% decrease in the selling price or a 5% decrease in variable costs? Why?

Step by Step Solution

★★★★★

3.43 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A 5 decrease in selling price would result in a larger decrease in unit contribut... View full answer

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

Document Format (1 attachment)

Word file Icon

229-B-M-A-B-P-C (582).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

Which of the following would be expected to give a positive test with Benedicts reagent? Why? (a) D-Galactitol (see structure in margin) (d) D-Fructose (b) L-Arabinose (e) Lactose (c) 1,...

Q:

Which of the following would not overstate current- period net income? a. Capitalizing an expenditure that should be expensed. b. Failing to record a liability as an expense. c. Failing to record a...

Q:

Which of the following would not be considered confidential information obtained in the course of an engagement for which the clients consent would be needed for disclosure? a. Information about...

Q:

Assignment 1 - Modeling, Sensitivity Analysis & Financial Excel Functions Part1: Sara sells two types of cakes from home. The total fixed cost for every month is budgeted at 200 BD. The labor cost...

Q:

Assignment 1 - Modeling, Sensitivity Analysis & Financial Excel Functions Part1: Sara sells two types of cakes from home. The total fixed cost for every month is budgeted at 200 BD. The labor cost...

Q:

You had the following data extracted from the books and records of one of the industrial companies that produce and sell product (K), during the period ending June 30, 2015: Direct materials 06 $ per...

Q:

I need it to be solved using modeling , sensitivity analysis and financial excel functions with excel or written. Part1: Sara sells two types of cakes from home. The total fixed cost for every month...

Q:

SUMMARY OF FORMULAS Cost-Volume Profit Analysis Contribution margin per unit (CMU) = Selling price per unit - Variable cost per unit B.E.P.in units = Fixed costs/CMU B.E.P.in revenues = B.E.P.in...

Q:

SUMMARY OF FORMULAS Cost-Volume Profit Analysis Contribution margin per unit (CMU) = Selling price per unit - Variable cost per unit B.E.P.in units = Fixed costs/CMU B.E.P.in revenues = B.E.P.in...

Q:

please answer please answer Section B Answer any one (1) question from this section [20 Marks] Question 3 PARTA [13 Marks Lively Inc manufactures a single product and is considering whether to use...

Q:

Suppose that a derivative claim makes continuous payments at the rate _. Show that the Black-Scholes equation becomes V, +o's Vss + (r 8)SVs +r -rV = 0

Q:

Jed Clampett needs help analyzing his latest investment. Details are as follows: Purchased: 150 shares @ $45.35 per share Commissions Paid When Purchased: $15.00 Sold: 150 shares @ $43.25 Commissions...

Q:

Off - balance - sheet items are Blank _ _ _ _ _ _ and Blank _ _ _ _ _ _ that may affect the future status of a financial institutions balance sheet. Multiple choice question. assets; contingent...

Q:

The acceptance may be (i) express. (iii) neither (i) nor (ii). (ii) implied. (iv) either (i) or (ii).

Q:

What is meant by a products contribution margin ratio? How is this ratio useful in planning business operations?

Q:

In all respects, Company A and Company B are identical except that Company As costs are mostly variable, whereas Company Bs costs are mostly fixed, When sales increase, which Company will tend to...

Q:

In all respects, Company A and Company B are identical except that Company As costs are mostly variable, whereas Company Bs costs are mostly fixed, When sales increase, which Company will tend to...

Q:

Telstar Communications is going to purchase an asset for $ 3 8 0 , 0 0 0 that will produce $ 1 8 0 , 0 0 0 per year for the next four years in earnings before depreciation and taxes. The asset will...

Q:

PLEASE USE EXCEL TO SOLVE AND SHOW HOW IT WAS SOLVED / FUNCTIONS Roenfeld Corp. believes the following probability distribution exists for its stock. What is the coefficient of variation on the...

Q:

XYZ Yogurt Company is considering developing a new flavor of yogurt- root beer flavored yogurt. the following are the base case assumptions for this product: Life = 3 years Capital Outlay =...