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If q is the quantity of a product sold p is the price

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14.If Q is the quantity of a product sold, P is the price per unit, V is the variable expenseper unit, and F is the total fixed expense, then the degree of operating leverage is equalto: [Q(P-V)] ÷ [Q(P-V)-F]AACSB:AnalyticAICPA BB:Critical ThinkingAICPA FN:ReportingLO:8Level:HardlOMoARcPSD|7268017
15.A shift in the sales mix from products with high contribution margin ratios towardproducts with low contribution margin ratios will raise the break-even point.AACSB:AnalyticAICPA BB:Critical Thinking
AICPA FN:ReportingLO:9Level:MediumMultiple Choice Questions16.Contribution margin can be defined as:DAACSB:Reflective ThinkingAICPA BB:Critical ThinkingAICPA FN:ReportingLO:1Level:Easy
17.Which of the following statements is correct with regard to a CVP graph?BAACSB:Reflective ThinkingAICPA BB:Critical ThinkingAICPA FN:ReportingLO:2Level:Easy
Garrison/Noreen/Brewer, Managerial Accounting, Twelfth Edition6-9Downloaded by Slavica Patce ([email protected])
Chapter 6Cost-Volume-Profit Relationships18.If both the fixed and variable expenses associated with a product decrease, what willbe the effect on the contribution margin ratio and the break-even point, respectively?Contribution margin ratioBreak-even pointA)DecreaseIncreaseB)IncreaseDecreaseC)DecreaseDecreaseD)IncreaseIncreaseAns:

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Contribution Margin, Slavica Patce

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