Q31E
ExpertverifiedDetermine how each change effects the elements of the costvolumeprofit graph by placing an X in the appropriate column(s).
EFFECT  
Sales Line  Fixed Cost Line  Total cost line  Breakeven point  
Change  Slope Increases  Slope decreases  Shifts up  Shifts Down  Slope Increases  Slope Decreases  Increases  Decreases 
Sales price per unit Increases 








Sales price per unit Decreases 








Variable cost per unit Increases 








Variable cost per unit decreases 








Total fixed cost increases 








Total fixed cost decreases 








The effects of the sales line, fixed cost line, total cost line, and breakeven point is shown with the cross.
The breakeven point is defined as the level of production at which the cost of production becomes equal to the revenues of the product.
EFFECT  
Sales Line  Fixed Cost Line  Total cost line  Breakeven point  
Change  Slope Increases  Slope decreases  Shifts up  Shifts Down  Slope Increases  Slope Decreases  Increases  Decreases 
Sales price per unit Increases  X 





 X 
Sales price per unit Decreases 
 X 



 X 

Variable cost per unit Increases 



 X 
 X 

Variable cost per unit decreases 



 X 

 X 
Total fixed cost increases 

 X 
 X 
 X 

Total fixed cost decreases 


 X 
 X 
 X 
Sales price per unit increases: The slop of the sales line will increase as the sales price per unit is increasing as it will increase the sales revenue. The breakeven point decreases as the sales revenue increases because contribution per unit increases, which is inverse to the breakeven point.
Sales price per unit decreases: The slop of the sales line will decrease as the sales price per unit decreases—the breakeven point increase with the decrease in sales revenue. Contribution per unit decreases as sales price decreases, which is inverse to the breakeven point.
Variable Cost per unit increases: The total cost line will increase as the total Cost includes fixed and Variable Costs. The breakeven point will increase as the sales reach breakeven will increase.
Variable Cost per unit decreases: The total cost line will decrease, as total Cost includes fixed Costs and variable Costs. As production increases, fixed cost per unit decreases, leading to a lower total cost relative to total production. The breakeven point will decrease as variable costs decrease because the decrease in variable Costs leads to a high contribution per unit. As contribution increases breakeven point decreases.
Total fixed cost increases: The fixed cost line will increase as the fixed cost increases, and the total cost line will increase as the total Cost includes fixed Costs and variable Costs. The breakeven point will increase as the sales required to cover the total fixed cost increase with an increase in fixed costs.
Total fixed cost decreases: The fixed cost line will increase as the fixed cost decrease, and the total cost line will decrease as the total Cost includes fixed Costs and variable Costs. The breakeven point will decrease as the sales required to cover total fixed cost decrease with fixed cost decreases.
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