1. Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent.

	Cost	Machine Hours
March	$3,070	15,463
April	2,684	10,410
May	2,843	12,363
June	3,566	18,388

a.$0.11

b.$0.62

c.$0.66

d.$1.22

2. If sales are $822,000, variable costs are 61% of sales, and operating income is $244,000, what is the contribution margin ratio?

a.61%

b.57%

c.43%

d.39%

3. Bryce Co. sales are $853,000, variable costs are $461,500, and operating income is $225,000. What is the contribution margin ratio?

a.54.1%

b.41.6%

c.45.9%

d.59.3%

4. If fixed costs are $260,000, the unit selling price is $116, and the unit variable costs are $70, what is the break-even sales (units)?

a.3,714 units

b.1,398 units

c.2,241 units

d.5,652 units

5. If fixed costs are $758,000 and variable costs are 70% of sales, what is the break-even point in sales dollars?

a.$2,526,667

b.$3,284,667

c.$530,600

d.$1,288,600

6. If fixed costs are $1,464,000, the unit selling price is $226, and the unit variable costs are $103, what is the amount of sales required to realize an operating income of $221,000?

a.13,699 units

b.2,146 units

c.14,214 units

d.6,478 units

7. When Isaiah Company has fixed costs of $108,160 and the contribution margin is $26, the break-even point is

a.5,500 units

b.4,160 units

c.8,320 units

d.11,570 units

8. If a business had sales of $4,325,000 and a margin of safety of 20%, the break-even point was

a.$3,460,000

b.$865,000

c.$5,190,000

d.$7,785,000