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On a cost-volume profit graph, the break-even point is located at the origin where the total revenue line interests the volume axis where the total
On a cost-volume profit graph, the break-even point is located at the origin where the total revenue line interests the volume axis where the total expenses line intersects the dollars axis where the total revenue line intersects the total expenses line. If a company increase advertising by $500,000, this will cause net operating increase if the resulting increase in sales dollars is greater than: $500,000. $500,000 divided by the percentage increase in advertising. $500,000 divided by the degree of operating leverage. $500,000 divided by the contribution ration. Once the break-even point is reached: the total contribution margin changes from negative to positive. net operating income will increasing by the unit contributing margin for sold. variable expenses will remain constant in total. the contribution margin ratio begins to decrease. Which of the following is true regarding the contribution margin ratio company? As fixed expenses decrease, the contribution margin ration increases. The contribution margin ratio multiplied by the variable expenses contribution margin per unit. If sales increases, the dollar increase in net operating income can be the contribution margin ratio by the dollar increases in sales. The contribution margin ratio increase as the number of units so Assuming that the unit sales are unchanged, the total contribution fixed expenses increase. fixed expenses decrease. variable expenses per unit increases. variable expense per unit decreases. To obtain the break-even point in terms of dollar sales, total which of the following? Variable expense per unit. Variable expense per unit Selling price per unit Fixed expense per unit. (Selling price per unit - Variable expense per unit/Selling
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