In a multi-product firm, if the sales mix changes, the break-even points for each product will not change.

Select one:

a. True

b. False

The Accra Corporation has fixed costs of GH280,000 and variable costs of GH8.50 per unit. It has a target operating income of GH300,000. How many units must it sell at GH20 per unit to achieve its target operating income?

Select one:

a. 51,429 units.

b. 76,571 units.

c. 41,176 units.

d. 50,435 units

ABC Company had the following data for the month: Variable costs per unit included direct materials of GH 4.00; direct labour of GH 3.20; variable overhead of GH 1.00 and variable selling expenses of GH 0.40. Fixed overhead is GH 4,000 per month. During the month, 2,000 units were produced. ABC started the month with 300 units in beginning inventory, with unit product cost equal to this month's unit product cost. A total of 2,100 units were sold during the month at price of GH 14. Selling and administrative expense for the month, all fixed, totaled GH 3,600. What is operating income under variable costing?

Select one:

a. GH 3,740.

b. GH 7,980.

c. GH 3,540.

d. GH 11,340.

Opoku Company is considering an investment with the following data: Initial cost is GH 200,000; annual net cash inflows are GH 25,000; expected life 10 years; and with zero salvage value. Depreciation will be taken on a straight-line basis over the expected life of the investment. What is the accounting rate of return for the investment?

Select one:

a. 2.5%.

b. 25.0%.

c. 10.0%.

d. 12.50%.