1. Cavaliers Inc sell product sells a product for $10 per unit. The fixed cost are $240,000 and the unit variable cost are 60% of the selling price. What sales would be necessary in order for cavaliers INC. to realize a profit for 10% of sales.

Show solution.

2. The cheesapeake Bay Company has fixed cost of $400,000 and variable cost are 75% of the selling price. To realize profits of $100,000 from sales of $500,000 units the selling price per unit must be ?

Show solution

3. At breakeven point of 200 units variable cost total $400 and fixed cost total $600. The 201 st unit sold will contribute __________ to profits. Show solution

a. $1.00

b. $2.00

c. $3.00

d. $5.00

4. Assume of following cost information for mighty chocolate company, Inc.

selling price $120 PER UNIT

Variable Cost $80 per unit

Total fixed cost $80,000

Income tax rate 40%

What minimum volume of sales dollars is required to earn an after-tax net income of 30,000 show solution

What is the number of units that must be sold to earn an after tax net income of $42,000

Show solution.