Cuyahoga Valley Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $138,000, which includes fixed costs of $68,000 and variable costs of $70,000. The company can buy the part from an outside supplier for $3.50 per unit and avoid 30% of the fixed costs.

If Cuyahoga Valley Bicycles makes the part, how much will its operating income be?

	$90,400 less than if the company bought the part
	$47,600 greater than if the company bought the part
	$45,600 less than if the company bought the part
	$49,600 greater than if the company bought the part

Question

To find the sales revenue needed to break even, a formula that could be used is

	contribution margin per unit fixed expenses.
	fixed expenses contribution margin ratio.
	contribution margin ratio fixed expenses.
	fixed expenses contribution margin per unit.

Question

The selling price of a particular product is $5 per unit, the variable expense is $3 per unit, and the breakeven sales in dollars are $18,660. What are the total fixed expenses?

	$1,866
	$3,732
	$7,464
	$12,440