Jenny is considering starting a new business selling floral amangements to be delivered to the customer's door. She will sell each foral aangement for 20 and expects her costs for the first year of business to be Advertising Rent 1,000 3.000 Light & Heat 1.500 Flowers Ribbon Delivery 40.50 per un Based on her market research, Jenny expects to sell 2.000 units in her first year. 1. What is Jenny's expected contribution per unit? a) 10 b) 9.50 c) 20 d) none of the above 2. How many units will Jenny need to sell she wants to make a profit of 15,000 a) 750 b) 2.000 c) 1,025 d) none of the above 3. Blower Limited expects to sell 15.000 units in the next quarter. Each unit sells for 30 and has variable costs of 20. The management accountant has prepared this break even chart Total Reve Point A, where the two lines intersect represents 12.000 units. On this basis which of the following statements icoect a) Blower Limited is expected to make a loss in the next quarter by There is insufficient information to determine whether Blower Limited is expected to make a profit or loss in the next quarter. c) Blower Limited's fixed costs for the next quarter are expected to be 300,000 d) Blower Limited is expected to make a proft of 30,000 in the next 4. If the variable cost of a product increases while all other variables remain unchanged what happens to the margin of safety? a) This cannot be answered without further information b) The margin of safety will increase c) The margin of safety will decrease d) The margin of safety will remain unchanged 5. Which of the following is not an assumption in Cost Volume-Profit analysis for the relevant range? a) The fixed costs remain the same. b) The revenue per unit decreases with increased activity c) There is no inventory. d) The variable cost per unit remains the same