10) Shams Company has total variable costs of 80% of total revenues and fixed costs of $20 million per year.

What is the break-even point expressed in total revenue dollars?

Answer: $100 million

11) Hardwork Company, a producer of electronic components, has the following information:

Income tax rate30%

Selling price per unit$8.00

Variable cost per unit$3.00

Tbchotal fixed costs$120,000.00

The break-even point in dollars is ____192,000____.

12) Worbel Company has variable costs of $5 per unit and a selling price of $10 per unit. Fixed costs are $100,000. Planned unit sales for 2015 are 25,000 units. Actual unit sales for 2014 were 22,000.

What is the margin of safety in dollars for 2015?

Budgeted sales break even sales

25000x10 = 250000 200000 = 50000

Break even in units = fc / CMU = 100000 / 5 = 20000 units x 10 = $200000

The answer: $50,000

13) Wetzel Company has variable costs of $5 per unit and a selling price of $10 per unit. Fixed costs are $200,000. Planned unit sales for 2015 are 45,000 units. Actual unit sales for 2014 were 42,000.

What is the margin of safety in units for 2015?

The answer: 5000 units

13) Key Company has a contribution-margin ratio of 0.30. Targeted net income is $76,800 and targeted sales volume in dollars is $480,000.

What are total fixed costs?

The answer: 67200