Assume the following information:

	Amount
Selling price	$ 30
Variable expense ratio	80%
Fixed expenses	$ 8,000	per month
Unit sales	3,400	per month

How many units need to be sold to achieve a target profit of $17,650?

Multiple Choice

• 2,942 units

• 6,348 units

• 4,275 units

• 1,035 units

Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,370, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be:

rev: 07_17_2020_QC_CS-208650

Multiple Choice

• $27,370.

• $5,810.

• $3,440.

• $34,250.

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 44%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

• The total variable expenses = $88,000

• The break-even point is 5,833 units

• The total fixed expenses = $78,000

• The total contribution margin = $112,000