1. Nate sells a single product for 50.00. Variable costs are 60% of the selling price, and the company has fixed costs that amount to 400,000. Current sales total 16,000. Nate will:

1. Will break even by selling 8,000 units
2. Will break even by selling 13,333 units
3. Will break even by selling 20,000 units
4. Will breakeven by selling 1,000,000units
5. Cannot break even because it loses money on every unit sold

2. A company that desires to lower its breakeven point should desire to

1. Decrease selling prices
2. Reduce variable costs
3. Increase fixed costs
4. Sell more units
5. Achieve more than one of the answers listed

3. A forecast of a cost at a particular level of activity is known as

1. Cost estimation
2. Cost prediction
3. Cost behavior
4. Cost analysis
5. Cost approximation

4. Costs that remain the same over a wide range of activity but jump to a different amount outside that range are known as

1. Step fixed costs
2. Step variable costs
3. Semi variable costs
4. Curvilinear costs
5. Mixed costs

5. Elise Corp has the following sales mix for its three products: A,20% b. 35% and C 45%. Fixed costs total 400,000and the weighted average contribution margin is 100.00. How many units of product A must be sold to break even?

1. 800
2. 4,000
3. 20,000
4. None of the answers are correct
5. Cannot be determined based on the information presented

6. Which of the following occurs if a company experiences an increase in its fixed costs?

1. Net income would increase
2. The breakeven point would increase
3. The contribution margin would increase
4. The contribution would decrease
5. More than one of the answers would occur

7. All other things being equal a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest:

1. Selling price
2. Variable cost
3. Contribution margin
4. Fixed cost
5. Gross margin

8. The relationship between cost and activity is known as

1. Cost estimation
2. Cost prediction
3. Cost behavior
4. Cost analysis
5. Cost approximation

9. Sims Co Sells a single product to wholesaler. The companys budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of 20.00, variable cost per unit of $8, and total fixed costs of 360,000.00. If Sims unit sales are 300 unites more than anticipated its breakeven point will

1. Increase by 12.00 per unit sold
2. Decrease by 12.00 per unit sold
3. Increase by 8.00 per unit sold
4. Decrease by 8.00 per unit sold
5. Not change