2. Vango Industries sells two products, Basic models and Deluxe models. Basic models sell for $40 per unit with variable costs of $30 per unit. Deluxe models sell for $48 per unit with variable costs of $40 per unit. Total fixed costs for the company are $76,000. Vango Industries typically sells three Basic models for every Deluxe model. What is the breakeven point in total units?

Select one:

a. 6,909 units

b. 8,000 units

c. 13,818 units

d. 4,000 units

3. Which of the following is TRUE regarding a static budget?

Select one:

a. A static budget is adjusted for changes in the level of sales activity.

b. A static budget is prepared for only one level of sales activity.

c. A static budget is a budget that stays the same from one period to the next.

d. A static budget is also known as a fixed budget.

4. Which of the following is NOT a possible reason for a flexible budget variance between flexible budget amounts and actual results?

Select one:

a. The amount of labor used per unit of output was different than expected.

b. The actual volume of sales was different than expected.

c. Material prices per unit of output were different than expected.

d. None of the above is a possible reason for a variance.