Question
1. A company makes two products: tables and chairs. How would a lower than expected fixed cost impact a multi-product Cost-Volume-Profit Analysis for this company?
1. A company makes two products: tables and chairs. How would a lower than expected fixed cost impact a multi-product Cost-Volume-Profit Analysis for this company?
It would decrease the weighted-average unit contribution margin.
It would increase the total break-even units.
It would decrease the break-even units for tables.
It would increase the break-even units for chairs.
2. A company makes two products: tables and chairs. How would a higher than expected selling price per unit for chairs impact a multi-product Cost-Volume-Profit Analysis for this company?
It would decrease the break-even sales.
It would increase the break-even sales.
It would decrease the sales mix percent for chairs.
It would not change the break-even units for tables.
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The Birth Of American Accountancy
Authors: Peter L. McMickle, Paul H. Jensen
1st Edition
0367534681, 9780367534684
