Determine sales in units for desired profit if Fixed cost is $15,000, desired profit is $5,000 Selling price per unit is $20 and Variable cost per unit is $16. *

5,000 units

$5,000

10,000 units

None of the above

Calculate margin of safety if sales is $300,000 and break-even point is $450,000. *

$100,000

$150,000

Amount of sales < B.E.P, therefore no margin of safety

None of the above

Determine Contribution Margin if Fixed cost is $40,000 and net income is $30,000: *

$10,000

$70,000

$30,000

None of the above

Using equation method, sal point is calculated as: *

Sales revenues = Variable expenses + Fixed expenses + Net Income

Sales revenues = Variable expenses + Fixed expenses Net Income

Sales revenues = Variable expenses - Fixed expenses + Net Income

None of the above