INSTRUCTIONS: Solve the following problems and record the answers in the Answers column.

		For Scoring
	Answers
0. If total fixed costs are $700,000 and production is 35,000 units, the unit fixed cost is ...............................................................................................	$20.00	0. ____
13. A firm has $500,000 of fixed costs, a unit selling price of $12, and variable costs of $8.
1. The break-even point, in units, is .................................................................		1. ____
2. If fixed costs increase by 12%, the new break-even point, in units, is ..		2. ____
3. The contribution margin ratio is ....................................................................		3. ____
4. A firm has $625,000 in fixed costs, a unit selling price of $8, and variable costs of $6. The number of sales, in units, necessary to earn a target profit of $125,000 is .........................................................................		4. ____
5. If Pennan Co. has an operating leverage of 3 and sales increase from $500,000 to $550,000, the percentage increase expected in operating profit is ............................................................................................		5. ____
6. If sales are $800,000, the unit selling price is $20, unit variable cost is $16, and sales at the break-even point are $400,000, the contribution margin is ...........................................................................................................		6. ____
78. The data for the highest and lowest levels of a firms production are as follows: Units Produced Total Costs Highest level 14,000 $66,000 Lowest level 2,000 18,000
7. The variable cost per unit is ..........................................................................	$	7. ____
8. The estimated total cost to produce 6,000 units is ....................................	$	8. ____
910. A firm manufactures two products, X and Y. The fixed costs are $13,000 and the sales mix is 75% X and 25% Y. The unit selling price and the unit variable cost for each product are as follows: Unit Selling Price Unit Variable Cost X $20 $ 8 Y 60 44
9. The break-even sales (units) of X and Y is .................................................		9. ____
10. The number of units of Y that would be sold at the break-even point is ............................................................................................................................. ..............................................................................................................................		10. ____