Question
30. Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per
30. Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. Ramirezs fixed costs are $891,000. How many units of Q-Drive would be sold at the break-even point?
a. 3,300
b. 4,455
c. 11,000
d. 7,700
Use the following information for questions 6869.
Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $6,660,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.
31. The break-even point in dollars is
a. $2,464,200.
b. $15,488,373.
c. $16,650,000.
d. $18,000,000.
32. What will sales be for the Sporting Goods Division at the break-even point?
a. $5,400,000
b. $6,300,000
c. $10,067,442
d. $11,700,000
33. Mercantile Corporation has sales of $2,000,000, variable costs of $800,000, and fixed costs of $900,000.
Mercantiles degree of operating leverage is
a. 1.33.
b. 1.67.
c. 1.50.
d. 4.00.
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