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d) $290 23. Bates Company currently produces and sells 4,000 units of a product that has a contribution ma of $5 per unit. The company
d) $290 23. Bates Company currently produces and sells 4,000 units of a product that has a contribution ma of $5 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $20,000 d in new technology and expects the variable cost per unit to fall to 812 ger unIt Thected to inreas ed cots by $5,00. After the new invest made, how many units must be sold to break even? 2,917 units 4,375 units 7,000 units ) ,000 units produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are 530,000. The product is sold for $5.00 per unit and the company desires to earn a target of $20,000. What is the amount of sales that will be necessary to earn the desirerd b) ) $83,333 $75,000 $so,000 d) $125,000 25. Once sales reach the break-even point, each additional unit sold will a) increase fixed cost by a proportionate amount. reduce the margin of safety increase the company's operating leverage increase profit by an amount equal to the per unit contribution margin. c) 26. Mitchell Company sells its product for $100 per unit. The variable cost per unit is $50. Total fixed costs are $500,000. What is the company's break-even point in units? 10,000 b) 750 c) 2,600 d) 4,000 27. Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The company's fixed costs are 40,000. The product sells for $12.00 a unit and the company desires to earn a 20,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.) a) $36,000 b) $24,000 c)$48,000 d) none of these 28. Wu Company incurred $60,000 of fixed cost and $40,000 of variable cost when 4,000 units of product were made and sold. If the company's volume increases to 5,000 units, the total cost penan will be a) $95,000 b) $80,000
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