1. The weighted-average contribution margin of all the products is computed when determining the break-even sales for a multi-product firm.
2.If Conan Corporation sells two products with a sales mix of 75% : 25%, and the respective contribution margins are $100 and $300, then weighted-average unit contribution margin is $150.
3.Net income can be increased or decreased by changing the sales mix.
4.The break-even point in dollars is variable costs divided by the weighted-average contribution margin ratio.
5.If a company has limited machine hours available for production, it is generally more profitable to produce and sell the product with the highest contribution margin per machine hour.
6.Cost structure refers to the relative proportion of fixed versus variable costs that a company incurs.
7.Operating leverage refers to the extent to which a company's net income reacts to a given change in fixed costs.
8.If O'Brien Company has a margin of safety ratio of .60, it could sustain a 60 percent decline in sales before it would be operating at a loss.
9.A company with low operating leverage will experience a sharp increase in net income with a given increase in sales.
10.The difference between absorption costing and variable costing is the treatment of fixed manufacturing overhead.
11.Selling and administrative costs are period costs under both absorption and variable costing.
12.Some fixed manufacturing costs of the current period are deferred to future periods through ending inventory under variable costing.
13.When units produced exceed units sold, income under absorption costing is higher than income under variable costing.
14.When absorption costing is used for external reporting, variable costing can still be used for internal reporting purposes.
15.When absorption costing is used, management may be tempted to overproduce in a given period in order to increase net income.
These are all true and false question. they are extra credit and word differently from the book. Its confusing and some of it already got wrong. Please help me thank you so much.