Question

Costs that stay the same per unit, and that increase in total with each unit made and sold are

1. break-even costs

2. variable costs

3. mixed costs

4. fixed costs

Answer #1

Answer- 2) variable cost

The cost that remain constant per unit and changes in total with the change in production is called variable cost.

If production increase the total cost will increase and if production decrease the total cost will decrease, but the per unit cost will remain constant if there is change in production

Fixed cost is the cost that remain constant in total and changes per unit as per change in production.

Break even cost is cost where there is no profit or no loss at that point. The cost incurred at the break even level is break even cost.

Mixed cost is the combination of variable cost and fixed cost . It is also called as step cost, because the per unit cost will remain same upto certain level and again increase and remain constant for some level of output and increase and goes on.

Total fixed cost = $66,000
Selling price per unit = $14
Variable costs per unit = $6
Net target income (after tax) = $52,000
Tax rate = 35%.
a)Calculate break even point in units
b) calculate the sales revenue (in dollars) required to achieve
the target income
c) calculate the difference in operating income when one extra
unit is sold
d) if fixed cost increased by 20%, what is the new unit
contribution margin required to maintain the same break-even...

A company's break-even point will not be
increased by:
a) an increase in total fixed costs.
b) a decrease in the selling price per unit.
c) an increase in the variable cost per unit.
d) an increase in the number of units produced and sold.

What effect will an increase in unit variable cost or total
fixed costs have on the break-even point? What effect will an
increase in the unit sales price have on the break-even point?
Please explain.

Blanchard Company manufactures a single product that sells for
$100 per unit and whose total variable costs are $76 per unit. The
company’s annual fixed costs are $338,400.
(1) Prepare a contribution margin income statement for Blanchard
Company at the break-even point.
BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount
Percentage
of sales
%
Sales
Variable costs
Contribution margin
Fixed costs
$
(2) Assume the company’s fixed costs increase by $126,000. What
amount of sales (in dollars) is needed...

Blanchard Company manufactures a single product that sells for
$110 per unit and whose total variable costs are $88 per unit. The
company’s annual fixed costs are $308,000.
(1) Prepare a contribution margin income statement for Blanchard
Company at the break-even point.
BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount
Percentage
of sales
Sales
Variable costs
Contribution margin
Fixed costs
Net income
Sales
Variable costs
Contribution margin
Fixed costs
Net income
%
Sales
Variable costs
Contribution margin
Fixed costs...

Sales Price: $50.00 per unit Variable Costs: $20.00 per unit
Total Fixed Costs: $90,000 What is the break-even point in sales
dollars?

Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...

Blanchard Company manufactures a single product that sells for
$240 per unit and whose total variable costs are $192 per unit. The
company’s annual fixed costs are $734,400.
(1) Prepare a contribution margin income statement for Blanchard
Company showing sales, variable costs, and fixed costs at the
break-even point.
(2) Assume the company’s fixed costs increase by $138,000. What
amount of sales (in dollars) is needed to break even?
BLANCHARD COMPANY
Contribution Margin Income Statement
(at Break-Even)
Amount
Percentage of...

In year 1 Frodo Company has variable costs of $80 per
unit, total fixed costs of $200,000, and a break-even point of
5,000 units. If the company raises the sales price per unit by $10
the following year, how many units must Frodo Company sell to break
even in Year 2?
A.
3,000 units
B.
4,000 units
C.
6,000 units
D.
5,000 units

A
product sells for $30 per unit and has a variable costs of $17.75
per unit. The fixed costs are $967,750. If the variable cost per
unit or to decrease to $15.50 per unit, fixed costs increase to
$1,145,500, and the selling price does not change, break even point
in units would:
A) equal 6000
B) Decrease by 25,742
C) Not change
D) Increase by 25,742
E) increase by 5925

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