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inst - fs - iad - prod.inscloudgate.net Assume that the firm is operating within its relevant range for all questions. In an operating environment that
instfsiadprod.inscloudgate.net
Assume that the firm is operating within its relevant range for all questions.
In an operating environment that contains both fixed and variable costs, as the activity level increases, the average cost per unit will
a increase
b decrease
c remain the same
An invested dollar amount, earning an annual rate of return of will double read this as also nearly or just over double in value in approximately circle abor c years.
a
b
c
d
The formula for the contribution margin ratio is
a total revenue minus total costs
b total revenue minus variable costs
c total revenue minus fixed costs
d total revenue minus variable costs divided by total revenue
The annual payment necessary to amortize pay off a $ loan with a year repayment period annual end of year payments required is
MSM Inc. is a profitable company. It sells only one type of product. Management is considering raising selling prices by to offset an expected increase in all fixed and variable costs. The impact of making this change will be to
a Increase the unit breakeven point
b Decrease the unit breakeven point
c Cause no change to the unit breakeven point
On a normal breakeven graph the line with the steepest slope is the
a revenue line
b total cost line
c fixed cost line
On a normal breakeven graph a reduction in fixed cost will move the unit breakeven point
a to the left
b to the right
c not at all
MSM Inc. sells garden statues. Each statue sells for $ MSM Inc. buys each statue for $ and pays a commission to salespeople for all sales made by the company. All other costs $ each month are fixed. If MSM Inc. reduces monthly fixed cost by $ but increases the commission rate by
a the monthly breakeven point in unit sales will increase
b the monthly breakeven point in unit sales will decrease
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