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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

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

Question Posted: