Assume that the cost of goods sold in the previous question was $70,000.

If Econo Company sold 10,000 units during July and the gross margin totaled $30,000,

what was the sales price per unit?

$10.11

$9.94

$10.00

$10.09

Variable costs within the relevant range

Stay constant on a per-unit basis as output changes

Increase in total as output increases

Decrease in total as output decreases

All of these are correct

If output decreases by 50% and is still within the relevant range

Total fixed cost will remain the same

Total fixed costs will increase by 50%

Net income will increase by 50%

Total variable costs will increase by 50%

At the level of units necessary to sell to earn a target operating income,

Total contribution margin equals total fixed cost

Total sales equals total fixed cost

Total revenue equals variable cost plus the target operating income

Total contribution margin will equal the fixed costs plus the target operating income

If the selling price per unit decreases, sales volume at the break-even point will

Double

Increase

Stay constant

Decrease

Melody Company sells a product for $14, variable costs are $12 per unit, and total fixed costs

are $5,040. What is the break-even point in units?

420

720

1,280

2,520

A company provided the following data:

Selling price per unit	$60
Variable cost per unit	$40
Total fixed costs	$400,000

What is the break-even point in dollar sales?

$800,000

$400,000

$600,000

$1,200,000

A company provided the following data:

Selling price per unit	$60
Variable cost per unit	$40
Total fixed costs	$400,000

How many units must be sold to earn a profit of $40,000?

20,000

22,000

23,333

8,500

Rachel Company sells office chairs at $350 each, incurs variable cost per unit of $100, and has a total fixed expense of $57,500. How many units must be sold to achieve a target operating income of $55,000?

360

450

230

225

Which of the following are easy to trace to individual jobs?

		Direct materials and direct labor
		Overhead and indirect labor
		Direct materials and overhead
		Direct labor and overhead