4. Patricia Company produces two products, X and Y, which account for 60 percent and 40 percent, respectively, of total sales dollars. Contribution margin ratios are 50 percent for X and 25 percent for Y. Total fixed costs are $120,000. What is Patricia's break-even point in sales dollars?

A) $300,000

B) $375,000

C) $342,856

D) $328,767

6.

Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the break-even point in hours? (round to the nearest whole hour)

A)3,714 B)1,393 C)2,229 D)12,000 E)5,571

7.

Dirth Company sells only one product at a regular price of $7.50 per unit. Variable expenses are 60% of sales and fixed expenses are $30,000. Management has decided to decrease the selling price to $6.00 in hopes of increasing its volume of sales. What is the contribution margin ratio when the selling price is reduced to $6 per unit?

A)60% B)25% C)40% D)75%

8.

Paney Company makes calendars. Information on cost per unit is as follows:

Direct materials	$1.50
Direct labor	1.20
Variable overhead	0.90
Variable marketing expense	0.40

Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.What is the variable cost per unit?

A)$5.00 B)$3.70 C)$4.00 D)$4.60 E)$1.30