Question
Please answer all 4 as they are parts under 1 question section. Thank you!! A firm expects to sell 25,000 units of its product at
Please answer all 4 as they are parts under 1 question section. Thank you!!
A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, total fixed cost must be
a. $65,000
b. $90,000
c. $125,000
d. $215,000
e. $275,000
A firm expects to sell 25,000 units of its product at $11 per unit and to incur variable costs per unit of $6. Total fixed costs are $70,000. The pretax net income is
a. $55,000
b. $90,000
c. $125,000
d. $150,000
e. $380,000
Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?
a. $245,000
b. $207,500
c. $37,300
d. $170,000
e. $39,200
A company has fixed costs of $600,000 and variable cost per unit of $20. If it sells its product for $30 per unit, how many units must be sold to break even?
a. 20,000
b. 12,000
c. 30,000
d. 60,000
e. 1,800,000
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