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Thepotemich [5.8K]
3 years ago
8

If the fixed costs for a product decrease and the variable costs (as a percentage of sales dollars) decrease, what will be the e

ffect on the contribution margin ratio and the breakeven point respectively? Contribution Breakeven Margin Ratio Point A decreased increased B increased decreased C decreased decreased D increased increased
Business
1 answer:
il63 [147K]3 years ago
7 0

Answer:

Option (b) is correct.

Explanation:

Contribution margin ratio is the difference between the selling price of the product and the variable cost of the product.

Contribution margin ratio = Selling price - Variable cost

Now, if there is a decrease in the fixed costs and variable costs of the product then as a result contribution margin ratio increases because of the fall in variable cost.

Break even point = (Fixed expense ÷ Contribution margin ratio)

If there is an increase in the contribution margin ration and a reduction in the fixed expense then as a result break even point decreases.

Increased; Decreased

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grigory [225]

Answer:

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Explanation:

A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.

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Hamilton believed that, together, his funding and assumption programs would A) gain the monetary and political support of the ri
ICE Princess25 [194]

Answer:

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Explanation:

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3 years ago
What makes increased government spending an effective tool for increasing demand?
Ivenika [448]

Answer:

The increased government spending generates people to have an increase in funds available which will allow them to increase their consumption and liek that the demand increases.

Explanation:

If there is an increase in government spending, this will cause people to have more funds available, for example, it can cause the unemployed people to find jobs which will allow them to have more money to spend. Because of that, the demand for products and services will increase which can produce growth in the short term.

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3 years ago
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Temka [501]

Answer:

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kvasek [131]

Answer:

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