17. Anthony Industries manufactures lawnmowers. The selling price of a lawnmower is $300 and variable costs are $180 per unit. Fixed costs are $1,200,000 per period. What is Anthonys break-even point in units?

a. 4,000

b. 6,667

c. 10,000

d. 1,200,000

e. 3,000,000

18. Atlantic Corporation manufactures lobster traps. Variable costs per unit are $10 per unit. Fixed costs are $300,000. Atlantics break-even point is 50,000 units. Ignoring taxess, what is the selling price of an Atlantic lobster trap?

a. $6

b. $10

c. $12

d. $14

e. $16

19. Which of the following is not an assumption of break-even analysis?

a. A company is operating within its relevant range of activity.

b. All costs are either variable or fixed.

c. Revenues and variable costs are constant per unit.

d. Contribution margin is the difference between selling price and total cost per unit.

e. Fixed cost per unit decreases as volume increases.