1. The break-even in units sold will decrease if there is an increase in: a. Unit sales volume ...

Question:

1. The break-even in units sold will decrease if there is an increase in:

a. Unit sales volume

b. total fixed expenses

c. unit variable expenses

d. Selling Price

2. Meyers Corporation had the following inventory balances at the beginning and end of November:

November 1 November 30
Raw Materials $ 17,000 $ 20,000
Finished Goods $ 50,000 $ 44,000
Work in Process $ 9,000 $ 11,000

During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $8 per direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost.

The direct materials cost in the November 1 Work in Process inventory account totaled:........

Break-even Analysis

Break-even analysis is one of the methods to analyze the factors of production, the cost of productions, and decide the selling price and more. The technique is used by managers for decision making and also to determine the respective costs, price, and expenses for the product.

Answer and Explanation:

1. The correct answer is d. selling price

Explanation- Decrease in the units sold will affect the contribution margin from selling price and variable...

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Using Break-Even Analysis to Evaluate a Marketing Plan

from UExcel Principles of Marketing: Study Guide & Test Prep

Chapter 3 / Lesson 4
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