Assume the linear cost relation of the cost-volume-profit model for a single-product firm and use the following
Question:
Assume the linear cost relation of the cost-volume-profit model for a single-product firm and use the following answer key:
(1) more than double
(2) double
(3) increase, but less than double
(4) remain the same
(5) decrease-- Complete each of the following statements, assuming that all other things (such as quantities) remain constant.
a. If price doubles, revenue will .
b. If price doubles, the total contribution margin (contribution margin per unit X number of units) will .
c. If price doubles, profit will .
d. If contribution margin per unit doubles, profit will .
e. If fixed costs double, the total contribution margin will .
f. If fixed costs double, profit will .
g. If fixed costs double, the break-even point of units sold will h. If total sales of units double, profit will .
i. If total sales dollars double, the break-even point will .
j. If the contribution margin per unit doubles, the break-even point will k. If both variable costs per unit and selling price per unit double, profit will
Step by Step Answer:
Managerial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780030259630
7th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson