Assume the data below for a company:

Sales 13,500 units

Sales Price per Unit $11.75 per unit

Variable Cost Per Unit $6.35 per unit

Fixed Costs $50,000.00

The contribution margin ratio for the company is _____________.

Question 6 options:

A)

31%

B)

46%

C)

3.18

D)	None of the above

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Question 7 (5 points)

The Henderson Company reports sales of $100,000, variable costs of $63,000, and fixed costs of $30,000. Income from operations for the company is $37,000.

Question 7 options:

	A) True
	B) False

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Question 8 (8 points)

Assume the data below for a company:

Sales 13,500 units

Sales Price per Unit $11.75 per unit

Variable Cost Per Unit $6.35 per unit

Fixed Costs $50,000.00

The operating leverage for the company is _____________.

Question 8 options:

A)

3.18

B)

31%

C)

46%

D)	None of the above

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Question 9 (4 points)

The difference between contribution margin and income from operations is fixed charges.

Question 9 options:

	A) True
	B) False

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Question 10 (6 points)

The Henderson Company sold 100 units at $10 per unit. The variable cost per unit was $5.5. Fixed Costs totaled $300. The unit contribution margin was _____________.

Question 10 options:

A)

$4.50

B)

$450

C)

$150

D)	None of the Above

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Question 11 (8 points)

Assume the data below for a company:

Sales 13,500 units

Sales Price per Unit $11.75 per unit

Variable Cost Per Unit $6.35 per unit

Fixed Costs $50,000.00

The break even sales for the company is _____________.

Question 11 options:

A)

$108,696

B)	9,259.26 units

C)	$50,000.00

D)	None of the above

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Question 12 (2 points)

Fixed costs are costs that remain the same in total dollar amount as the activity base changes.

Question 12 options:

	A) True
	B) False