Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $30,000. Given these three assumptions, the unit sales needed to break-even is:

Multiple Choice

• 5,000 units.

• 35,000 units.

• 32,500 units.

• 2,500 units.

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Assume the following (1) Total sales = $141,000 (2) the contribution margin ratio = 40%, and (3) total fixed expenses = $45,000. Given these three assumptions, the margin of safety is:

Multiple Choice

• $105,000.

• $27,000.

• $28,500.

• $63,000.

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Assume the following information:

	Amount	Per Unit
Sales	$ 300,000	$ 40
Variable expenses	112,500	15
Contribution margin	187,500	$ 25
Fixed expenses	34,000
Net operating income	$ 153,500

The unit sales to attain a target profit of $213,000 is:

Multiple Choice

• 8,512 units.

• 11,142 units.

• 16,467 units.

• 9,880 units.