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Esercise 5 (20 points) Information regarding a product manufactured and sold by Preston is shown be Maximum capacity with existing facilities Total fixed costs per

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Esercise 5 (20 points) Information regarding a product manufactured and sold by Preston is shown be Maximum capacity with existing facilities Total fixed costs per month Variable cost per unit Sales price per unit 4,000 units $50,000 $42.00 $56.00 1 Refer to the above data. The contributicon margin ratio for tis product is 20%. b 25%. 30%. 40%. e d 2 Refer to the abave data. a 3.927 The number of units Prest ton must sell to break even is: (rounded) 4,823 b 3572 d 5,140 Refer to the above data. The dollar sales volume necessary to produce monthly operating income of $12,000 before taxes is a $188,000 b $186,000 $288,000. $248,000 St Use the following data for questions 4 and S ic Th e monthly shown below: high and low levels of units and total manufacturing overhead for Bellamy Company are Manufacturing Overhead Units $306,000 234,000 17,000 81,000 Highest observed leve! Lowest observed level Refer to the above data. The cost formula for Bellamy's monthly overhead cost can be expressed as a $2.65 average cost per unit b $1.75 average cost per unit e $24,000 fixed cost plus $1.00 per unit d $72,000 fixed cost+$2.00 per unit 4 Bellamy's manufacturing overhead should be approximately: a $52,500. b $79,500. 5 Refer to the above data. In a month in which 30,000 equivalent full units are produced, $132,000 d $ 90,500

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