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?*
A- The total expenses are $4,560,000
B-The total variable expenses are $3,060,000
C-The total expenses per unit are $6.33 per unit
D-The variable expenses per unit are $4.25 per unit
E-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?*
A-$14,000
B-$1,540,000
C-$2,310,000
D-$3,850,000
E-None of the above
The following is the only given.
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