Number of units	2000	4000
Total Cost:
Variable	$8000	$16000
Fixed	$8000	$8000
Cost Per Unit:
Variable	$4.00	(a)
Fixed	$4.00	(b)

Looking at the table above, what is (a):________________ and

(b):______________________

D. Sales revenue (2,000 units * $50 per unit) $100,000

Cost of goods sold:

Variable (2,000 units * $20 per unit) (40,000)

Fixed (9,000)

____________

Gross Margin 51,000

Administrative Salaries (13,000)

Sales office Depreciation (4,000)

Sales supplies(2,000 units *$3 per unit) (6,000)

__________

Net Income $28,000

Using the income statement above, if sales increased by 20%,

(1) What percent will net income increase?

(2) How much will the new net income be?

E. UNITS SOLD

Cost #1	100	200	300	400
Cost #2	$12 per unit	$6 per unit	$4 per unit	$3 per unit
	$5 per unit	$5 per unit	$5 per unit	$5 per unit

Determine whether Cost #1 and Cost #2 is variable, fixed, or mixed and why

Cost #1:_________________. Why: ___________________________________________________

Cost #2:_________________. Why: ___________________________________________________

F. Happy Gilmore produces snackpacks. In 2016, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 10,000 snackpacks at a total cost of $150,000. In January, it produced 5,000 snackpacks at a total cost of $100,000. Using the high/low method, determine (1) the variable cost per unit, and (2) the total fixed cost.

G. Barker Company's break-even point is 20,000 units. Its product sells for $50 and has a $30 variable cost per unit. What is the company's total fixed cost amount?

H. Cartman Company makes a Cheezy-poofs that sells for $5 a bag. Each bag has a variable cost of $1. Cartman has a total fixed costs of $8,000. At budgeted sales of $20,000. What is the margin of safety (in percentage)?

I. Butters Corporation recently noticed an increase in its fixed cost. All other costs and revenues were unchanged. What impact will this have on break-even point and the margin of safety (increase, decrease, or stay the same and why? feel free to make-up numbers to help explain why.

(1) Breakeven: _________________ Why:_______________________________________________________________

(2) Margin of Safety: _________________ Why:_______________________________________________________________