1. Cross Creek Company sells concrete culverts for $1,500 per unit. Currently, the company's sales revenue is $900,000, variable costs total $450,000, and fixed costs total $300,000. If Cross Creek's controller has calculated the company's breakeven point to be $597,000, what is the company's margin of safety in units?

2. At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000. If the company sells one additional unit, by how much will their operating income increase?

3. Benny Books sells first edition books. Benny purchases the books from his supplier for $100 a book and sells them through his website for $225 a book. Benny's fixed costs are $87,000. What is Benny's breakeven point in books?

4. Assume a company sells their only product for $20 per unit. Their variable costs total $16 per unit. The company has fixed costs totaling $168,000. The company sells 50,000 units.

What is the contribution margin per unit?

5. Assume a company sells their only product for $20 per unit. Their variable costs total $16 per unit. The company has fixed costs totaling $168,000. The company sells 50,000 units.

What is the breakeven point in units?

6. Assume a company sells 500 units for $20 each. Their direct material costs total $3,000. Their direct labor and variable overhead total $2,000. Their sales people earn a 20% commission on all sales. Sales commissions are the only variable selling, general or operating costs.The company's fixed costs consist of $1,000 in rent, $500 in salaries and $500 in advertising costs. Calculate contribution margin ratio.

7. Assume a company sells 500 units for $20 each. Their direct material costs total $3,000. Their direct labor and variable overhead total $2,000. Their sales people earn a 20% commission on all sales. Sales commissions are the only variable selling, general or operating costs.The company's fixed costs consist of $1,000 in rent, $500 in salaries and $500 in advertising costs. Calculate the company's operating income.

8. Dana owns her own real estate agency. She has been working hard to increase her client base. She offers the most comprehensive advertising campaign in the city and it has been paying off by the steady increase in the number of listings over the last several months. However, Dana is concerned that her extensive cost for advertising is eating into her profits. It is difficult to determine how much she spends on advertising for each listing because some of her advertising sources are fixed amounts each month and others are more variable in nature. She would like to analyze the following information to determine how her advertising costs behave based on the number of listings.

Month	Number of Listings	Advertising Cost
March	22	$15,280
April	26	17,640
May	35	23,145
June	42	27,205
July	48	30,565
August	51	32,485
September	50	31,835
October	56	36,020
November	54	34,920

Using regression analysis, what is the probability that Dana's variable cost per listing are actually $0?