1.Burger Bob's Boathouse sells only one product. 7,000 units were sold in year, resulting in $70,000 of sales revenue. Variable costs were $28,000 for the year, and fixed costs were $24,000. The Break-even point in volume is:

a.3,000 units

b.4,000 units

c.2,000 units

d.7,000 units

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2.How many units would have to be sold to yield a target operating income of $6,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?

a.4,800 units

b.4,400 units

c.4,000 units

d.1,600 units

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3.Delta Merchandising, Inc., has provided the following information for the year just ended:

Net sales

$128,500

Beginning inventory

$24,000

Purchases

$80,000

Gross margin

$34,450

What was the ending inventory for the company at year-end?

a.$65,450.

b.$14,050.

c.$24,500.

d.$9,950.

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4.Gabel Inc. is a merchandising company. Last month, the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $43,000, and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?

a.$61,000.

b.$65,000.

c.$63,000.

d.$91,000.

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