1)In 2019, Concord sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $400 per unit, and fixed expenses were $210000. The same selling price is expected for 2020. Concords variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Concord sell in 2020 to maintain the same income level as 2019?

1000

4000

2667

2000

2)Oriole Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Oriole incurs $6845000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point?

$12025000.

$6475000.

$10347093.

$5550000.