10. Pacos Bikes sells 120 bicycles each month for $400 per unit. Variable cost per unit is $160 and fixed costs total $4,800 per month. What is the contribution margin ratio?

a. 0.40

b. 0.60

c. 2.50

d. 0.70

e. None of the answer choices is correct.

Exhibit 6-1

Larimer Company has monthly fixed costs totaling $90,000 and variable costs of $5 per unit. Each unit of product is sold for $20.

11. Refer to Exhibit 6-1. What is the break-even point in units?

a. 3,600

b. 6,000

c. 4,500

d. 18,000

e. None of the answer choices is correct.

12 Refer to Exhibit 6-1. What is the break-even point in sales dollars?

a. $72,000

b. $90,000

c. $360,000

d. $120,000

e. None of the answer choices is correct.

13. Refer to Exhibit 6-1. How many units must be sold to earn a monthly profit of $135,000?

a. 6,750

b. 9,000

c. 15,000

d. 6,000

e. None of the answer choices is correct.