1.Magpie Inc. sells a single product for $40 per unit. Variable production costs are $12 per unit. Fixed overhead costs amount $54,000 per month. Variable selling costs are $8 per unit. Fixed selling costs are $6,000 per month. Last month, the company produced 10,000 units and sold 8,000 units.

What is the company's breakeven point in units (rounded)?

A. 8,000

B. 3,333

C. 3,000

D. 4,000

2.Magpie Inc. sells a single product for $40 per unit. Variable production costs are $12 per unit. Fixed overhead costs amount $54,000 per month. Variable selling costs are $8 per unit. Fixed selling costs are $6,000 per month. Last month, the company produced 10,000 units and sold 8,000 units.

How many units must the company sell to achieve a pre-tax profit of $200,000?

A. 13,000

B. 20,000

C. 50,000

D. 66,667

Magpie Inc. sells a single product for $40 per unit. Variable production costs are $12 per unit. Fixed overhead costs amount $54,000 per month. Variable selling costs are $8 per unit. Fixed selling costs are $6,000 per month. Last month, the company produced 10,000 units and sold 8,000 units.

Whats the margin of safety percentage if the company achieves the pre-tax profit of $200,000?

A. 76.92%

B. 91.67%

C. 8.33%

D.65%

4.

Hazel Inc. produces a single product and has a manufacturing capacity of up to 25,000 units per year. Production cost data for Hazel's last two months of operation were as follows:

	November	December
Production in units	4,000	6,000
Production costs incurred	$ 18,000	$ 22,000

Predict the production costs of next month (January), which is expected to produce 7,000 units.

A. 25,000

B. Cannot be determined

C. 23,000

D. 24,000