19.	Auto Zone believes it can sell 3,500,000 of a new vehicle charger for $8 each. There will be $3,000,000 in fixed costs associated with the charger. If the company desires to make a profit of $2,000,000 on the charger, what is the target variable cost per charger?
	A)	$7.25
	B)	$9.00
	C)	$6.57
	D)	$9.40

20.	On July 26, 2012, Radio Shack announced disappointing 2nd quarter earnings that caused the stock to fall 29% to all time lows. Although sales were up 1.2% to $953.2 million gross profit fell 16.6% to $360.3 million. Assuming Radio Shacks store count and fixed costs were the same in the 2nd quarter of 2011 and 2012, which of the following statements is the best explanation for the decrease in the firms profitability?
	A)	Opportunity costs decreased.
	B)	Margin of safety decreased.
	C)	Contribution margin decreased.
	D)	Selling price decreased.

21	Paul's Pizza produced and sold 2,000 pizzas last month and had fixed costs of $6,000. If production and sales are expected to increase by 10% next month, which of the following statements is true?
	A)	Total fixed costs will decrease.
	B)	Fixed cost per unit will decrease.
	C)	Total fixed costs will increase.
	D)	Fixed cost per unit will increase.

22.	The Synergy Company uses cost-plus pricing with a 50% mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6. In addition, the company incurs $200,000 in fixed costs annually. If demand falls to 80,000 units and the company wants to continue to earn a 50% return, what price should the company charge?
	A)	$13.50
	B)	$14.55
	C)	$12.75
	D)	$10.95

Use the following to answer question 23:

Taylor's Treasures has collected the following information over the last six months.

Month	Units produced	Total costs
March	10,000	$25,600
April	12,000	26,200
May	18,000	27,600
June	13,000	26,450
July	12,000	26,000
August	15,000	26,500

23.	Using the high-low method, what is the variable cost per unit?
	A)	$0.25
	B)	$2.56
	C)	$0.22
	D)	$2.00

24.	During 2014, Teko Inc. reported revenues of $925,400 and profits of $88,500. Fixed costs were $456,250 and 37,016 units were sold. If costs and prices are expected to stay the same in 2015, and Teko expects to sell 40,000 units, what will be the companys budgeted profit?
	A)	$95,457
	B)	$132,414
	C)	$525,000
	D)	$667,957

25.	Visit finance.yahoo.com and determine which of the following statements is incorrect:
	A)	The current market cap of Google is greater than the market cap of Microsoft.
	B)	The current ratio for the most recent quarter for Microsoft is greater than the current ratio for Google.
	C)	The current price per share of Google is more than ten times that of Microsoft.
	D)	Return on equity for the most recent quarter for Microsoft is higher than return on equity for Google.