Question
2 multiple choice questions for Managerial Accounting below: 1). Eliade Co. sells its product for $7 per unit. The company's break-even sales are $210,000. When
2 multiple choice questions for Managerial Accounting below:
1). Eliade Co. sells its product for $7 per unit. The company's break-even sales are
$210,000.
When reviewing last year's sales, the controller noted that the margin of safety was
20%.
How many units were sold last year?
a) 24,000
b) 30,000
c) 37,500
d) 262,500
2). Shady's Inc. manufactures lampshades. The controller provides you with the
following information from the coming year's budget:
Income tax rate 40%
Variable cost per shade $2.50
Total fixed costs $250,000
Planned unit sales of lampshades 100,000
What is the selling price per lampshade that will achieve a desired after-tax
operating income of $27,000?
a) $2.77
b) $2.95
c) $5.27
d) $5.45
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