1) Crane reported the following information for the current year: Sales (40000 units) $800000, direct materials and direct labor $400000, other variable costs $40000, and fixed costs $360000. What is Cranes break-even point in units?

65455.

40000.

32727.

36000.

2) For Coronado Industries, sales is $1300000, fixed expenses are $360000, and the contribution margin ratio is 36%. What are the total variable expenses?

$1300000

$230400

$468000

$832000

3) Swifty Corporation can produce 100 units of a component part with the following costs:

Direct Materials	$19000
Direct Labor	3500
Variable Overhead	17000
Fixed Overhead	11000

If Swifty Corporation can purchase the component part externally for $44000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Make and save $2500

Buy and save $2500

Make and save $500

Buy and save $4500