Question
1. At an activity level of 720,000 units, the total variable expenses are $3,060,000, and the total fixed expenses are $1,500,000. Which of the following
1. At an activity level of 720,000 units, the total variable expenses are $3,060,000, and the total fixed expenses are $1,500,000. Which of the following is correct if 850,000 units are produced, and this activity level is within the relevant range?*
The total expenses are $4,560,000
The total variable expenses are $3,060,000
The total expenses per unit are $6.33 per unit
The variable expenses per unit are $4.25 per unit
None of the above
2. The unit sales to break-even are 35,000 units, the unit selling price is $110 per unit, and the contribution margin ratio is 40%. What is the amount of fixed expenses?*
$14,000
$1,540,000
$2,310,000
$3,850,000
None of the above
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