1.

Umbridge Purses Unlimited sells purses with a sales price of $25.00 each. Each purse costs the company $20.00 to produce, and the store incurs a total of $210,000 in fixed costs each year. What is the yearly breakeven point in units?

Select one:

a. 21,000 purses

b. None of these options are correct.

c. 42,000 purses

d. 8,400 purses

e. 10,500 purses

2.

Fennier Company sells a single product for $14 per unit. Variable costs are $9 per unit and fixed costs are $195,000. How many units must Fennier sell to earn $42,000 after income tax, assuming a 20% tax rate?

Select one:

a. 47,400

b. 49,500

c. 36,429

d. 51,000

e. None of these options are correct.

3.

Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under variable costing? (Round per-unit costs to the nearest cent.) Select one: a. $234,663 b. None of these options are correct. c. $237,900 d. $295,737 e. $292,500