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Jerusalem Industrial Company presents the following information for the year 2015: Sales in units 80,000 units; Selling price per unit $25; Variable cost ratio 60%;

Jerusalem Industrial Company presents the following information for the year 2015: Sales in units 80,000 units; Selling price per unit $25; Variable cost ratio 60%; Total fixed cost $700,000.

Match between the question and the appropriate answer.

Compute a new break-even point in units if the fixed cost is decreased by 5%.

Answer 1Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

What is the total sale in units to earn a profit of $120,000?

Answer 2Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

The margin of Safety in units

Answer 3Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

How many units must be sold to break even?

Answer 4Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

The margin of Safety ratio

Answer 5Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

The Contribution Margin per unit is

Answer 6Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

The break-even point in dollar is

Answer 7Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

Contribution Margin ratio is

Answer 8Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

The total Contribution Margin for the year is

Answer 9Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

Net income for the year 2015 is

Answer 10Choose...$100,000$10$800,000$3010,000 units$300,00015,000 units50%40,000 units$1,750,000$1,400,00073,500 units12.5%82,000 units70,000 units40%66,500 units$1,500,000

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