Knowee
Questions
Features
Study Tools

An increase in variable costs .a.reduces contribution .b.increase margin of safety.c.increases the profit.d.increases p/v ratio .

Question

An increase in variable costs .a.reduces contribution .b.increase margin of safety.c.increases the profit.d.increases p/v ratio .
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

The impact of an increase in variable costs on different financial aspects can be explained as follows:

a. Reduces Contribution: Variable costs are those costs that change directly with the level of output. When variable costs increase, it means that more costs are being incurred for each unit of o Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  

This problem has been solved

Similar Questions

New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a contribution margin ratio of 40 percent.

If the contribution margin per unit is $15 and selling price per unit is $20, the contribution margin ratio is:

Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65.

If the contribution margin per unit is $15 and selling price per unit is $20, the contribution margin ratio is:Group of answer choices133%.75%.60%.80%.

P/V Ratio is 25% and Margin of Safety is Rs; 3,00,000, the amount of profit is .a.Rs. 80,000.b.Rs. 1,00,000.c.. Rs. 60,000.d.Rs. 75,000.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.