Question
1) If ABC company has a fixed costs of $1000, they sell a single product at a Price of $10 with Variable Costs of $5
1) If ABC company has a fixed costs of $1000, they sell a single product at a Price of $10 with Variable Costs of $5 per unit. What is the break-even point in units? A) 200 units B) 0 units C) 1000 units D) 100 units
2) If ABC company has a break-even point of 200 units, where their variable costs total $400 and fixed costs total $600. The 201st unit sold will contribute ________ to profits. A) $1 B) $2 C) $3 D) $5
3) Nicole Norris wished to sell her customers a special round-trip airline ticket package. She can purchase the package from the airline carrier for $400 each. The airline will reimburse Nicole for any unsold ticket packages. The tickets will be sold to the public for $500 each. Nicole has a tax rate of 30% on her business income. What is the amount of sales in dollars required for Nicole to earn an after-tax profit of $7,000 if fixed costs are $10,000? A) $17,000 B) $50,000 C) $70,588 D) $100,000
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