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Please answer the questions below QUESTION 1 Select the incorrect statement regarding cost structures. A. Highly leveraged companies will experience greater profits than companies less
Please answer the questions below
QUESTION 1 Select the incorrect statement regarding cost structures. A. Highly leveraged companies will experience greater profits than companies less leveraged when sales increase. B The more variable cost, the higher the fluctuation in income as sales fluctuate. -When sales change, the amount of the corresponding change in income is affected by the company's cost structure. D -Faced with significant uncertainty about future revenues, a low leverage cost structure is preferable to a high leverage cost structure. QUESTION 2 Rose Company sells its product for $100 per unit. The company's accountant provided the following cost information: Manufacturing costs $ 25,000 + 45% of sales Selling costs $ 15,000 - 20% of sales Administrative costs $ 25,000 + 10% of sales What is the company's break-even point in units? A. 1,000. 3. 750. O 2,600. OD 4,000 QUESTION 3 A company sets the selling price for its product by adding a markup to the product's variable manufacturing costs. This approach to pricing is referred to as: A. cost-plus pricing. O B. target pricing OC target costing D.contribution margin-based pricing. QUESTION 4 Fly Company recently reduced its advertising budget. All other costs and revenues were unchanged. Select the response that indicates the impact of the advertising cuts on the company's break-even point and margin of safety Break-even Point Margin of Safety Increase A) Increase B) Decrease Decrease C) Increase Decrease Increase DJ Decrease OA. A OB. 8 QUESTION 5 A&A Company has a break-even of $800,000 in total sales. Assuming the company sells its product for $50 per unit, what is its margin of safety in units if sales total $850,000? O A 5,000 units OB. 250,000 units OC. 12,000 units OD 17.000 unitsStep by Step Solution
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