1. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in dollars with the purchase of the new machine.

-------A. $500,000.-------B.$440,678.-------C.$521,923.-------D.$480,000.-------E. $460,000.

2. Dunkin Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the contribution margin ratio.

-------A.37.5%.-------B 62.5%.-------C. 55.0%------D.. 50.0%.-------E. 47.5%.

3. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the contribution margin per unit if the machine is purchased.

-------A.$22.50-------B.$26.00.-------C. $29.50------D.$28.50------E..$27.50.

4. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in units if the new machine is purchased.

-------A.10,438 units. ------B.8,814 units. -------C. 10,000 units. ------D.9,200 units.-----E. 9,869 units.

5. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. What effect would the purchase of the new machine have on Winthrop's break-even point in units?

------A.800 unit increase. ------B800 unit decrease. -------C. 5,714 unit increase. ------D.4,444 unit decrease. ----E. No effect on the break-even point in units.