4. Calculate the break-even point in dollars from the following information: Selling price per unit is $50, variable costs per unit are $30 and fixed costs for the year are $25,000.

Group of answer choices

a.$1,250

b.$15,000

c.$41,667

d.$62,500

5. Green Fingers Ltd makes flower pots for gardens. If the selling price per pot is $80, the contribution margin ratio is 25%, and total fixed costs are $20,000, how many pots must they sell to achieve a desired profit of $25,000?

Group of answer choices

a.1,250

b.2,250

c.750

d.1,000

6. Which of the following statements are true regarding the margin of safety?

I. The margin of safety in units indicates the number of sales units that can be lost before the breakeven units are reached.

II. The margin of safety, if small, may require managers to focus on reducing costs to avoid potential loss.

III. The margin of safety in units is equal to the actual or estimated units of activity minus units at breakeven point.

a. I & II

b. I & III

c. II & III