ACC 227 ACC227 Module 6 Check Your Understanding Answers (AAU Online)

ACC 227 ACC227 Module 6 Check Your Understanding Answers (AAU Online)

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1.Key factors involved in C-V-P analysis include: 

2.As activity level decreases within the relevant range, per-unit variable costs usually will: 

3.Rent that is based on a fixed fee plus a percentage of total sales is an example of a: 

4.The high-low method is a useful tool for: 

5.Assume that Mercer Company has total variable costs of $100,000 when 50,000 units are sold.  If 40,000 units were sold, total variable costs would be: 

6.If a company’s total fixed costs increased by $20,000 and its contribution margin decreased by $12,000, net income would: 

7.If variable costs are $40 per unit, revenues are $80 per unit, and fixed costs are $20,000, the break-even point is: 

8.To reach a target income of $40,000, a firm with fixed costs of $20,000 and a per-unit contribution margin of $10 must sell: 

9.Maintaining high fixed costs and low variable costs rather than low fixed costs and high variable costs is a (more risky or more conservative) cost structure?

10.When other factors are constant, what is the effect on profits of an increase in fixed costs? 


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