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AccountingDiscussionmodule6.docx

Discuss your answers to the following questions:

1- Would an increase in variable costs per unit cause a company’s break-even point to increase or decrease? Why?

2- Would an increase in unit selling price cause a company’s break-even point to increase or decrease? Why?

3- An examination of the accounting records of Alinma Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, discuss a likely means of improving operating income. Explain your answer by sharing the calculations needed.

4- Both Alireza Company and Jarir Company had the same unit sales, total costs, and operating income for the current fiscal year; yet, Alireza Company had a lower break-even point than Jarir Company.Discuss the reason for this difference in break-even points and provide and example of this calculation.

Embed course material concepts, principles, and theories (which requires supporting citations) along with at least three scholarly, peer-reviewed references supporting your answer.