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Semmy [17]
3 years ago
12

Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per uni

t remain​ constant? A. The contribution margin decreases. B. The contribution margin increases. C. The breakeven point increases. D. The breakeven point decreases.
Business
1 answer:
Trava [24]3 years ago
3 0

Answer:

D. The breakeven point decreases.

Explanation:

Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.

The formula for break-even is

Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)

Since sales price and variable cost is constant, let's say

(Sales price per unit- Variable cost per unit)= constant (k)

So when we cross-multiply in the formula

Breakeven* k= Total fixed cost

It shows that Breakeven point is directly proportional to Total fixed cost.

So a reduction in Total fixed cost will result in a reduction in Breakeven point.

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AT the beginning of the day stock XYZ opened at $6.25. At the end of the day it closed at $5.95. What was the rate of change of
maria [59]

The stock went down 4.8%

Rate of Change of a stock is (New price - old price/ old price) *100

5.95-6.25 / 6.25 * 100

-.3/6.25 *100

-.048 *100 = -4.8%

8 0
3 years ago
Read 2 more answers
Nce managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business att
Nataliya [291]

Answer:

2. feasibility study

Explanation:

A feasibility study is done to analyse whether for example a school should or not expand the building open new sections and so on. the study also evaluates for labor and work in progress. It is an analysis of a proposed project to determine whether it is feasible and should go further. Feasibility is further divided into different categories such as economical , technical, operational etc. It aims to check the competitiveness of the business in the market and check its economic growth.

6 0
3 years ago
which account option is designed to house money for easy access, either by check or by debit card? certificate of deposit checki
marta [7]

A checking account is the type of account option that is designed to house money for easy access, either by check or by debit card.

<h3>What is a checking account?</h3>

It is also called a transaction account. It is a bank account that allows you to easily deposit & withdraw money for daily transactions. A checking account can also include depositing a check you receive, taking out cash with your debit card or setting up direct deposit for your paychecks.

Hence, the checking account is the type of account option that is designed to house money for easy access, either by check or by debit card.

Therefore, the Option B is correct.

Read more about checking account

brainly.com/question/24751568

#SPJ1

7 0
1 year ago
Manny has car insurance and was in an accident with a bill totaling $11,500. The insurance company says he needs to pay the firs
Charra [1.4K]

Answer:

A deductible

Explanation:

In insurance a deductible is the amount that a victim of an accident will have to.paynoit of his own pocket before the insurance pays for the rest.

When setting up an insurance the customer is allowed to set his deductible.

Lower deductibles attracts higher premium payments, while higher deductibles have lower premium payments.

In the scenario where Manny was in an accident with a bill totaling $11,500 and the insurance company says he needs to pay the first $1000. The $1,000 is the deductible amount

7 0
2 years ago
Item32 time remaining 46 minutes 2 seconds 00:46:02 item 32 item 32 time remaining 46 minutes 2 seconds 00:46:02 during a recent
abruzzese [7]

The variable cost is calculated as -

Sales - Variable cost = Contribution Margin

Given, Contribution Margin = 25 %

Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %

25 % of Sales = Contribution Margin = $ 400,000

Sales = $ 400,000 ÷ 25 %

Sales = $ 1,600,000

Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000

3 0
3 years ago
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