Question
Our company sells a product for $150 per unit. Variable costs are $90 per unit and fixed costs are $18,000. The company expects to sell
Our company sells a product for $150 per unit. Variable costs are $90 per unit and fixed costs are $18,000. The company expects to sell 800 units this year. How many units must we sell to break even?
a) 300
b) 320
c) 360
d) 400
Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,600 and $3,200 for the months of January and September. If we produced 1,200 and 600 units in these months, what was the variable cost per unit associated with the utilities bill?
a) $4.67
b) $5.33
c) $4.00
d) $5.00
Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000. What would be the breakeven point in units if variable cost increased by $10?
a) 500
b) 667
c) 1,000
d) 1,200
Our company sells its product for $100 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 300,and we expect to sell 250 units. What is the margin of safety in dollars?
a) ($3,000)
b) $3,000
c) ($5,000)
d) $5,000
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