1.

If the sales price is $13, the variable cost is $4, the fixed cost is $9,000, and 10,000 units are produced, the break-even in units is:

a		9,000
b		1,000
c		818
d		750

2.

SPKY Corporation received a special-order request for 50,000 new speakers at a sales price of $20 each. This is a $20 reduction in the normal sales price. The variable costs per speaker are $19. The total fixed costs of $100,000 will not change. Which of the following is TRUE?

a		Management should accept the order if the variable costs per unit and fixed costs in total will not change with the order.
b		Management should accept the order if they have no excess capacity.
c		Management should accept the order if the customers will expect the price decrease as the standard price in the future.
d		Management should reject the special order because the contribution margin per unit is small.

3.

A profit centre is a unit where managers are:

a		responsible for costs.
b		accountable for investments, revenues, and costs.
c		accountable for both revenues and costs.
d		accountable for revenues.