Question
11. In 2019, Bonita sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $470000. The same selling price
11. In 2019, Bonita sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $470000. The same selling price is expected for 2020. Bonita is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Bonitas break-even point in units for 2020?
2350.
1880.
2256.
2820.
20. Crane Companys contribution margin is $27.50 per unit for Product A and $35 for Product B. Product A requires 2 machine hours and Product B requires 4 machine hours. How much is the contribution margin per unit of limited resource for each product?
A | B |
$13.75 | $9.17 |
$15.00 | $8.75 |
$15.00 | $9.17 |
$13.75 | $8.75 |
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