95. Ferguson Co. incurs $568,000 in fixed costs while producing three products with the following characteristics: Sales Mix Unit Product (Units) $900 600 35% What is the breakeven point in units? a) 400 b) 240 c) 299 d) 800 Answer: d Difficulty: Medium Learning Objective: Apply CVP calculations for multiple CPA: Management Accounting 96. Ferguson Co. incurs $568,000 in fixed costs while producing three products with the following characteristics: Sales Mix Unit Product (Units) $900 600 400 45% At the breakeven point, what is the dollar sales volume for Product Q? a) $800,000 b) $360,000 c) $288,000 d) $120,000 Answer: b Difficulty: Medium Learning Objective: Apply CVP calculations for multiple CPA: Management Accounting 97. Stuart, Inc. produces one item which sells for $2.40 and 97. Stuart, Inc. produces one item which sells for $2.40 and costs $1.40 per unit to make. All manufacturing costs are variable. If fixed selling and administrative costs total $140,000, how many units must be sold in order to break even? a) 100,000 b)140,000 c) 58,333 d) None of the above Answer: b Difficulty: Easy Learning Objective: Apply CVP calculations for multiple products. 98. The Candle Company expects sales of $500,000 and total variable costs of $200,000 in 2016. Total budgeted fixed costs are $180,000. What is the breakeven volume in sales dollars? a) $450,000 b) $300,000 c) $360,000 d) None of the above Answer: b Difficulty: Easy Learning Objective: Apply CVP calculations for multiple products. CPA: Management Accounting 99. Smith Oil Co. expects sales of $1,000,000 and total variable costs of $600,000 for 2016. Total budgeted fixed costs are $200,000. What is the dollar amount of sales necessary to achieve pre-tax profits of $400,000? a) $2,000,000 b) $1,200,000 c) $1,500,000 d) $1,000,000 Answer: C Difficulty: Easy Learning Objective: Apply CVP calculations for a single product