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besign Layout References Mailings Review View Help Search Hul-files from the Internet can contain vituses. Unless you need to edit, it's safe to stay in Protected View Enable Editing than it was before the change in cost. So need to be sold to reach the same financial goals. The opposite is also true. 42. Large companies that have thousands of different products will find breakeven in terms rather than in terms of sumber of units. The weighted average CM ratio is found from the CM income statement by dividing the by the 34. A decrease in fixed costs, with no other changes, will result in the CM However, the volume needed to breakeven (or achieve a target profit) will anyway. So ents need to be sold to reach the same financial goal. The opposite is also true. 43. When companies have many products, there is no one unique Rather, the is heavily influenced by the assumed 35. How can CVP analysis be used to assess individual business decisions (see Stop & Think)? 4. Part V- What are some common indicators of risk? (LO) 45. What does the "margin of safety" tell managers? 46. What is the basic formula? 36. Automation often results in variable Labor costs but can also result in fixed depreciation costs, while offshoring production can have similar effects on variable labor costs but can variable shipping costs. Decreasing the size of products can also variable costs 37. How do packaging changes, such as these at Coca-Cola, play into CVP analysis? 47. The margin of safety can be expressed in terms of or as a 48. How is the margin of safety percentage computed? 38. Briefly explain what "sales mix" means 49. Operating leverage refers to 39 Whir performing CVP analysis for a multiproduct firm, the main difference is that the must be used in the formulas rather than the unit CM of a sole product 50. A company with a higher operating leverage would have costs and variable costs, resulting in a fairly An example would be leverage companies also have risk of volume decreases and potential reward if volume increases. The opposite is true for companies with Party operating leverage An example would be 40. To find the weighted average CM. you first multiply the CM unit of each individual product by the to get the total of the basket". Then, as a final step, divide the total to arrive at the Weighted average CM urat 31. A company with a lower operating leverage would have fixed variable costs, resulting in a CN An example would be Lower operating leverage companies also have risku volume decreases and potential reward if volume increases 41. Once the total number of units to breakeven (or achieve a target profit) for a multiproduct company is found, we must separate the answer into the number of units of We do this by multiplying by the 52. Changes in volume have more of an impact on the operating income at operating leverage companies than at operating leverage com es Chapter 7 notes (1) - Protected View - Layout References Mailings Review View Help Search From the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing 34. A decrease in fixed costs, with no other changes, will result in the CM'unit. However, the volume needed to breakeven (or achieve a target profit) will anyway. So, units need to be sold to reach the same financial goals. The opposite is also true. 35. How can CVP analysis be used to assess individual business decisions (see Stop & Think)? 36. Automation often results in variable labor costs but can also result in fixed depreciation costs, while offshoring production can have similar effects on variable labor costs but can variable shipping costs. Decreasing the size of products can also variable costs. 37. How do packaging changes, such as those at Coca-Cola, play into CVP analysis? 38. Briefly explain what "sales mix" means. 39. When performing CVP analysis for a multiproduct firm, the main difference is that the must be used in the formulas rather than the unit CM of a sole product. 40. To find the weighted average CM. you first multiply the CM unit of each individual product by the to get the total of the "basket". Then, as a final step, divide the total to arrive at the Weighted average CM unit. 41. Once the total number of units to breakeven (or achieve a target profit) for a multiproduct company is found, we must separate the answer into the number of units of . We do this by multiplying by the 53. The operating leverage factor, at a given level of sales, is ce 54. The operating leverage factor indicates the 42. Large companies that have thousands of different products will find breakeven in terms rather than in terms of number of units. The weighted average CM ratio is found from the CM income statement by dividing the by the 43. When companies have many products, there is no one unique Rather, the _is heavily influenced by the assumed 44. Part V- What are some common indicators of risk? (LO 5) 45. What does the "margin of safety" tell managers? 46. What is the basic formula? 47. The margin of safety can be expressed in terms of__ or as a 48. How is the margin of safety percentage computed? 49. Operating leverage refers to... fixed 50. A company with a higher operating leverage would have costs and variable costs, resulting in a fairly CM % An example would be Higher operating leverage companies also have risk if volume decreases and potential reward if volume increases. The opposite is true for companies with fairly _operating leverage. An example would be 51. A company with a lower operating leverage would have fixed costs and variable costs, resulting in a fairly CM%. An example would be - Lower operating leverage companies also have risk if volume decreases and potential reward if volume increases. 52. Changes in volume have more of an impact on the operating income at operating leverage companies than at operating leverage companies at a given level of sales, is computed as: 33. An increase in variable cost, with no change in sales price, will result in _CM/unit, which will cause the volume needed to break even (or achieve a target profit) to be than it was before the change in cost. So units need to be sold to reach the same financial goals. The opposite is also true. 34. A decrease in fixed costs, with no other changes, will result in to the CM/unit. However, the volume needed to breakeven (or achieve a target profit) will anyway. So, units need to be sold to reach the same financial goals. The opposite is also true. 35. How can CVP analysis be used to assess individual business decisions (see Stop & Think)? 36. Automation often results in _variable labor costs but can also result in _fixed 36. Automation often results in __variable labor costs but can also result in fixed depreciation costs, while offshoring production can have similar effects on variable labor costs but can variable shipping costs. Decreasing the size of products can also _variable costs. 37. How do packaging changes, such as those at Coca-Cola, play into CVP analysis? 38. Briefly explain what "sales mix" means. 39. When performing CVP analysis for a multiproduct firm, the main difference is that the must be used in the formulas rather than the unit CM of a sole product. 40. To find the weighted average CM, you 40. To find the weighted average CM, you first multiply the CM/unit of each individual product by the to get the total _ of the "basket". Then, as a final step, divide the total to arrive at the Weighted average CM/unit. 41. Once the total number of units to breakeven (or achieve a target profit) for a multiproduct company is found, we must separate the answer into the number of units of _. We do this by multiplying by the 42. Large companies that have thousands of different products will find breakeven in terms of rather than in terms of number of units. The weighted average CM ratio is found from the CM income statement by dividing the y the 43. When companies have many products, there is no one unique 43. When companies have many products, there is no one unique _; Rather, the _is heavily influenced by the assumed 44. Part V- What are some common indicators of risk? (LO5) 45. What does the "margin of safety" tell managers? 46. What is the basic formula? 47. The margin of safety can be expressed in terms of or as a 48. How is the margin of safety percentage computed? 49. Operating leverage refers to... 50. A company with a higher operating leverage would have fixed costs and 50. A company with a higher operating leverage would have _fixed costs and _variable costs, resulting in a fairly CM%. An example would be Higher operating leverage companies also have risk if volume decreases and potential reward if volume increases. The opposite is true for companies with fairly _ _operating leverage. An example would be 51. A company with a lower operating leverage would have _fixed costs and variable costs, resulting in a fairly _CM%. An example would be _ Lower operating leverage companies also have risk if volume decreases and potential reward if volume increases. 52. Changes in volume have more of an impact on the operating income at - operating leverage companies than at operating leverage companies. 53. The operating leverage factor, at a given level of sales, is computed as: 53. The operating leverage factor, at a given level of sales, is computed as: 54. The operating leverage factor indicates the _change in _that will occur from a _% change in volume. 55. The lowest possible operating leverage factor is which will only occur if the company has In this case, the company has absolutely no since the worst that can happen _if they were to have no sales. 56. To find the percentage by which operating income will change, we multiply the percentage change in volume by the This works for both and volume. 57. The higher the operating leverage factor, the the impact a change in 57. The higher the operating leverage factor, _the impact a change in the has on 58. When choosing between alternative cost structures, managers find it helpful to calculate the which is the volume of sales that would generate the _total cost under either alternative. 59. How do managers calculated the indifference point? 60. To choose the most profitable cost structure, when volume is expected to be lower than the indifference point, managers should choose the option with the operating leverage; if the volume is expected to be higher than the indifference point, then managers should choose the option with the operating leverage. besign Layout References Mailings Review View Help Search Hul-files from the Internet can contain vituses. Unless you need to edit, it's safe to stay in Protected View Enable Editing than it was before the change in cost. So need to be sold to reach the same financial goals. The opposite is also true. 42. Large companies that have thousands of different products will find breakeven in terms rather than in terms of sumber of units. The weighted average CM ratio is found from the CM income statement by dividing the by the 34. A decrease in fixed costs, with no other changes, will result in the CM However, the volume needed to breakeven (or achieve a target profit) will anyway. So ents need to be sold to reach the same financial goal. The opposite is also true. 43. When companies have many products, there is no one unique Rather, the is heavily influenced by the assumed 35. How can CVP analysis be used to assess individual business decisions (see Stop & Think)? 4. Part V- What are some common indicators of risk? (LO) 45. What does the "margin of safety" tell managers? 46. What is the basic formula? 36. Automation often results in variable Labor costs but can also result in fixed depreciation costs, while offshoring production can have similar effects on variable labor costs but can variable shipping costs. Decreasing the size of products can also variable costs 37. How do packaging changes, such as these at Coca-Cola, play into CVP analysis? 47. The margin of safety can be expressed in terms of or as a 48. How is the margin of safety percentage computed? 38. Briefly explain what "sales mix" means 49. Operating leverage refers to 39 Whir performing CVP analysis for a multiproduct firm, the main difference is that the must be used in the formulas rather than the unit CM of a sole product 50. A company with a higher operating leverage would have costs and variable costs, resulting in a fairly An example would be leverage companies also have risk of volume decreases and potential reward if volume increases. The opposite is true for companies with Party operating leverage An example would be 40. To find the weighted average CM. you first multiply the CM unit of each individual product by the to get the total of the basket". Then, as a final step, divide the total to arrive at the Weighted average CM urat 31. A company with a lower operating leverage would have fixed variable costs, resulting in a CN An example would be Lower operating leverage companies also have risku volume decreases and potential reward if volume increases 41. Once the total number of units to breakeven (or achieve a target profit) for a multiproduct company is found, we must separate the answer into the number of units of We do this by multiplying by the 52. Changes in volume have more of an impact on the operating income at operating leverage companies than at operating leverage com es Chapter 7 notes (1) - Protected View - Layout References Mailings Review View Help Search From the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing 34. A decrease in fixed costs, with no other changes, will result in the CM'unit. However, the volume needed to breakeven (or achieve a target profit) will anyway. So, units need to be sold to reach the same financial goals. The opposite is also true. 35. How can CVP analysis be used to assess individual business decisions (see Stop & Think)? 36. Automation often results in variable labor costs but can also result in fixed depreciation costs, while offshoring production can have similar effects on variable labor costs but can variable shipping costs. Decreasing the size of products can also variable costs. 37. How do packaging changes, such as those at Coca-Cola, play into CVP analysis? 38. Briefly explain what "sales mix" means. 39. When performing CVP analysis for a multiproduct firm, the main difference is that the must be used in the formulas rather than the unit CM of a sole product. 40. To find the weighted average CM. you first multiply the CM unit of each individual product by the to get the total of the "basket". Then, as a final step, divide the total to arrive at the Weighted average CM unit. 41. Once the total number of units to breakeven (or achieve a target profit) for a multiproduct company is found, we must separate the answer into the number of units of . We do this by multiplying by the 53. The operating leverage factor, at a given level of sales, is ce 54. The operating leverage factor indicates the 42. Large companies that have thousands of different products will find breakeven in terms rather than in terms of number of units. The weighted average CM ratio is found from the CM income statement by dividing the by the 43. When companies have many products, there is no one unique Rather, the _is heavily influenced by the assumed 44. Part V- What are some common indicators of risk? (LO 5) 45. What does the "margin of safety" tell managers? 46. What is the basic formula? 47. The margin of safety can be expressed in terms of__ or as a 48. How is the margin of safety percentage computed? 49. Operating leverage refers to... fixed 50. A company with a higher operating leverage would have costs and variable costs, resulting in a fairly CM % An example would be Higher operating leverage companies also have risk if volume decreases and potential reward if volume increases. The opposite is true for companies with fairly _operating leverage. An example would be 51. A company with a lower operating leverage would have fixed costs and variable costs, resulting in a fairly CM%. An example would be - Lower operating leverage companies also have risk if volume decreases and potential reward if volume increases. 52. Changes in volume have more of an impact on the operating income at operating leverage companies than at operating leverage companies at a given level of sales, is computed as: 33. An increase in variable cost, with no change in sales price, will result in _CM/unit, which will cause the volume needed to break even (or achieve a target profit) to be than it was before the change in cost. So units need to be sold to reach the same financial goals. The opposite is also true. 34. A decrease in fixed costs, with no other changes, will result in to the CM/unit. However, the volume needed to breakeven (or achieve a target profit) will anyway. So, units need to be sold to reach the same financial goals. The opposite is also true. 35. How can CVP analysis be used to assess individual business decisions (see Stop & Think)? 36. Automation often results in _variable labor costs but can also result in _fixed 36. Automation often results in __variable labor costs but can also result in fixed depreciation costs, while offshoring production can have similar effects on variable labor costs but can variable shipping costs. Decreasing the size of products can also _variable costs. 37. How do packaging changes, such as those at Coca-Cola, play into CVP analysis? 38. Briefly explain what "sales mix" means. 39. When performing CVP analysis for a multiproduct firm, the main difference is that the must be used in the formulas rather than the unit CM of a sole product. 40. To find the weighted average CM, you 40. To find the weighted average CM, you first multiply the CM/unit of each individual product by the to get the total _ of the "basket". Then, as a final step, divide the total to arrive at the Weighted average CM/unit. 41. Once the total number of units to breakeven (or achieve a target profit) for a multiproduct company is found, we must separate the answer into the number of units of _. We do this by multiplying by the 42. Large companies that have thousands of different products will find breakeven in terms of rather than in terms of number of units. The weighted average CM ratio is found from the CM income statement by dividing the y the 43. When companies have many products, there is no one unique 43. When companies have many products, there is no one unique _; Rather, the _is heavily influenced by the assumed 44. Part V- What are some common indicators of risk? (LO5) 45. What does the "margin of safety" tell managers? 46. What is the basic formula? 47. The margin of safety can be expressed in terms of or as a 48. How is the margin of safety percentage computed? 49. Operating leverage refers to... 50. A company with a higher operating leverage would have fixed costs and 50. A company with a higher operating leverage would have _fixed costs and _variable costs, resulting in a fairly CM%. An example would be Higher operating leverage companies also have risk if volume decreases and potential reward if volume increases. The opposite is true for companies with fairly _ _operating leverage. An example would be 51. A company with a lower operating leverage would have _fixed costs and variable costs, resulting in a fairly _CM%. An example would be _ Lower operating leverage companies also have risk if volume decreases and potential reward if volume increases. 52. Changes in volume have more of an impact on the operating income at - operating leverage companies than at operating leverage companies. 53. The operating leverage factor, at a given level of sales, is computed as: 53. The operating leverage factor, at a given level of sales, is computed as: 54. The operating leverage factor indicates the _change in _that will occur from a _% change in volume. 55. The lowest possible operating leverage factor is which will only occur if the company has In this case, the company has absolutely no since the worst that can happen _if they were to have no sales. 56. To find the percentage by which operating income will change, we multiply the percentage change in volume by the This works for both and volume. 57. The higher the operating leverage factor, the the impact a change in 57. The higher the operating leverage factor, _the impact a change in the has on 58. When choosing between alternative cost structures, managers find it helpful to calculate the which is the volume of sales that would generate the _total cost under either alternative. 59. How do managers calculated the indifference point? 60. To choose the most profitable cost structure, when volume is expected to be lower than the indifference point, managers should choose the option with the operating leverage; if the volume is expected to be higher than the indifference point, then managers should choose the option with the operating leverage