Acct 2020: question 1

Big Cat Rescue sells admission tickets for $10.00 per person. Variable costs are $8.50 per person and fixed costs are $21,000 per month. Thecompany's relevant range extends to 38,000 people per month. What is thecompany's projected operating income if 21,000 people tour the facility during amonth?

Question 2

Muffin Mania produces and sells a variety of muffins. The selling price per dozen is $17, variable costs are $7 perdozen, and total fixed costs are $6,000. How many dozen muffins must the company sell tobreakeven?

Question 3

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $3.75, variable costs are $2.50 perdozen, and total fixed costs are $1,000. What are breakeven sales indollars?

Question 4

Fletcher Inc. currently has a contribution margin of $30 on its only product. Fletcher Inc. is considering spending $8,200 more on advertising this year to generate an increase in sales of 5,000 units. How will this change affect its operatingincome?

It will increase operating income by $141,800

It will increase operating income by $158,200.

It will decrease operating income by $8,200.

It will increase operating income by $150,000.