1.

A firm sells a single product for $10. Its variable cost per unit is $7 and fixed costs are $60. The breakeven number of units is

Select one:

a.

100 units

b.

20 units.

c.

6 units.

d.

200 units.

2.A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $35. b. $210. c. $25. d. $150.

3.

A firm sells a single product for $8. Its variable cost per unit is $5 and fixed costs are $90. Ignoring income taxes, the number of units that it needs to sell for a 12.5% net profit margin is

Select one:

a.

30 units.

b.

45 units.

c.

360 units.

d.

240 units

4.

A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is

Select one:

a.

32 units.

b.

24 units.

c.

30 units.

d.

288 units.

5.

A firm sells a single product for $10. Its variable cost per unit is $6 and fixed costs are $80. If the firm has a 25% income tax rate, the sales revenue for a 15% net profit margin is

Select one:

a.

$32.

b.

$40.

c.

$400.

d.

$320.

6.

Ignore income taxes for this problem. A firm currently sells 25 units for $12 each. Its variable cost per unit is $9 and fixed costs total $60. The firm determines it can sell 35 units if it decreases the selling price from $12 to $11 per unit. The firm should

Select one:

a.

Decrease the sales price because it will increase profits by $5.

b.

Not decrease the sales price because it will decrease profits by $10.

c.

Not decrease the sales price because it will decrease profits by $5.

d.

Decrease the sales price because it will increase profits by $10.