Question
This is all one big question, according to chegg policy you have to answer the whole thing since its one all one question The contribution
This is all one big question, according to chegg policy you have to answer the whole thing since its one all one question
The contribution margin is viewed as a better gauge of the long run profitability of a segment than the segment margin.
T/F
Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment.
T/F
Smith Company sells a single product at a selling price of $30 per unit. Variable expenses are $12 per unit and fixed expenses are $41,400. Smith's break-even point is:
1,380 units
2,300 units
6,900 units
3,450 units
Puchalla Corporation sells a product for $230 per unit. The product's current sales are 13,400 units and its break-even sales are 10,720 units. The margin of safety as a percentage of sales is closest to
80%
20%
75%
25%
A company with sales of $50,000, variable costs of $35,000, and fixed costs of $25,000 will reach its breakeven point if sales are increased by $20,000.
T/F
The absorption costing approach considers fixed manufacturing costs to be product costs.
T/F
When additional units are sold, the change in operating income is equal to the change in contribution margin.
T/F
If a unit sells for $11.40 and has a variable cost of $3.80, its contribution margin per unit is $7.60.
T/F
Fixed costs per unit decrease as production levels decrease.
T/F
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