Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If sales volume remains constant, what variable would have changed for contribution margin to have decreased? Select one: O a. Fixed expenses decrease. O b.
If sales volume remains constant, what variable would have changed for contribution margin to have decreased? Select one: O a. Fixed expenses decrease. O b. Fixed expenses increase. O c. Variable expense per unit increases. O d. There is no change. O e. Variable expense per unit decreases. If a cost is classified as fixed or variable depends on how it behaves along with the relevant range. Select one: O True O False Mexico Company currently sells a product (called Sunshine). Because of poor weather, the company had an operating loss of ($35,000) based on revenues of $100,000, total variable costs of $75,000, and total fixed costs of $60,000. With improved weather, calculated the total dollar value of revenues that must be sold for Mexico Company to achieve an operating income equal to 10% of sales. Select one: O a. $500,000 W O b. $400,000 O c. $450,000 O d. $300,000 O e. $350,000 France Corporation is planning to sell 250,000 units of a new product (called baguette) for $1.60 each. If the contribution margin ratio of the product is 25%, what is its estimated total fixed cost? Select one: O a. $200,000 O b. $100,000 O c. $50,000 O d. $300,000 O e. $125,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started