1. Coronado Industries requires sales of $2500000 to cover its fixed costs of $300000 and to earn net income of $400000. What percent are variable costs of sales?

72.0%

12.0%

16.0%

28.0%

2. Bonita reported the following information for the current year: Sales (62000 units) $1240000, direct materials and direct labor $620000, other variable costs $62000, and fixed costs $360000. What is Bonita's break-even point in units?

50727.

40000.

36000.

32728.

3. The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 70a night. Operating costs are as follows.

Salaries$ 5,200per month

Utilities$ 1,300per month

Depreciation$ 1,200per month

Maintenance$ 826per month

Maid service$ 17per room

Other costs$ 32per room

Determine the inn's break-even point in number of rented rooms per month.

Break-even pointrooms

Determine the inn's break-even point in dollars.

Break-even point$