. In preparing to solve a break-even exercise, the suggested formula to begin with is as follows:

a.Total Revenues = Total Costs

b.Price x Volume= Total Costs

c.Price x Volume= Fixed Costs + Variable Costs

d.Price x Volume= Fixed Costs + (Variable Cost / Unit x Volume)

2. Given the below, determine the break-even price, given quantity, total fixed cost, and variable cost per unit.

PriceQuantityTotal Fixed Cost Variable Cost / Unit

?3,750$212,000$22

a.$85

b.$79

c.$82

d.$65

3. Given the below, find the break-even quantity, given price, total fixed cost, and variable cost per unit.

PriceQuantityTotal Fixed Cost Variable Cost per Unit

$75?$212,000$22

a.3,500

b.4,000

c.4,500

d.5,000

4.Given the below, calculate the break-even total fixed cost, given price, quantity, and variable cost per unit.

PriceQuantityTotal Fixed Cost Variable Cost per Unit

$753,750?$22

a.$200,000

b.$220,000

c.$198,750

d.$210,000

5. Given the below, determine the break-even variable cost per unit, given price, quantity, and total fixed cost.

PriceQuantityTotal Fixed Cost Variable Cost per Unit

$753,750$212,000?

a.$79

b.$22

c.$12

d.$18

6. Budget variances are:

a.A result of positive revenues

b.The difference between what was budgeted and what actually occurred

c.A budget that accommodates a range of activities

d.A tangible asset pledged to repay a loan

7. A full-time technician working in the local Walk-In Clinic is paid $62,000 per year (52 weeks) and works 40.0 hours per week over 5 days.The fringe benefit rate is 31 percent.The technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days. Assume all time off is taken.

What is the total hourly rate of pay?

a.$28.75

b.$29.81

c.$29.00

d.$32.70

8. A full-time technician working in the local Walk-In Clinic is paid $62,000 per year (52 weeks) and works 40.0 hours per week over 5 days.The fringe benefit rate is 31 percent.A technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days. Assume all holidays are taken.

What is the worked hourly rate of pay?

a.$29.81

b.$29.00

c.$32.70

d.$25.00

9. A full-time technician working in the local Walk-In Clinic is paid $62,000 per year (52 weeks) and works 40.0 hours per week over 5 days.The fringe benefit rate is 31 percent.In 2011, a technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days.

What is the fully "burdened" hourly rate of pay (i.e. the total cost per hour actually worked)?

a.$45.00

b.$29.81

c.$42.84

d.$32.70

10. A full-time technician working in the local Walk-In Clinic is paid $62,000 per year (52 weeks) and works 40.0 hours per week over 5 days.The fringe benefit rate is 31 percent.In 2011, a technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days.

How many full-time equivalent (FTE) technicians are required to staff the local Walk-In Clinic, 8 am to 7 pm on weekdays, and 9 am to 1 pm on Saturdays? Assume that two technicians must always be on duty during the clinic's hours of operation.

a.3.1435

b.1.5717

c.2.5255

d.3.5755

12. LGH, a non-taxpaying entity, is planning to purchase imaging equipment, including an MRI and ultrasonograms for its new imagining center. The equipment will generate $2,500,000 per year in revenues for the next five years. The expected operating expenses, excluding $800,000 in depreciation, will increase expenses by $950,000 per year for the next five years. The initial capital investment outlay for the imaging equipment is $4,500,000. The salvage value at year five is $500,000. The cost of capital is 9%. Compute the NPV.

The answers are presented in $000's.

a.$1,854

b.$4,500

c.$6,354

d.None of the above

13. LGH, a non-taxpaying entity, is planning to purchase imaging equipment, including an MRI and ultrasonograms for its new imagining center. The equipment will generate $2,500,000 per year in revenues for the next five years. The expected operating expenses, excluding $800,000 in depreciation, will increase expenses by $950,000 per year for the next five years. The initial capital investment outlay for the imaging equipment is $4,500,000. The salvage value at year five is $500,000. The cost of capital is 9%. Calculate the IRR.

Select the closet answer.

a.18.2%

b.21.3%

c.23.2%

d.25.4%