practice test problems

M https://usflearn.instructure.com/courses/1339390/quizzes... UITCCL AI3WC $60,000 0/1pts Unanswered Question 5 Winter Wonderland sells hand-knit scarves. Each scarf sells for $50. The company pays $30 to rent a vending space for one day. The variable costs are $10 per scarf. What total revenue amount does the company need to earn to break even? (Round any percentages to two decimal places and your final answer to the nearest cent.) $66.67 Correct Answer $37.50 $12.50 $50.00 Unanswered Question 6 0/1 pts 0/1pts Unanswered Question 6 Evans Tiles Company has estimated the following amounts for its next fiscal year: $833,000 Total fixed costs Sales price per unit 44 Variable costs per unit 24 What will happen to the breakeven point (in units) if Evans can reduce fixed costs by $20,000? (Round your answer up to the nearest whole unit.) Correct Answer The breakeven point will decrease by 1000 units. The breakeven point will increase by 455 units. The breakeven point will increase by 834 units. The breakeven point will decrease by 834 units. 0/1pts answered Question 7 Knapp Roofing Company has estimated the following amounts for its next fiscal year: Total fixed costs $833,000 Sale price per unit 60 Variable cost per unit 25 If the company spends an additional $35,000 on advertising, sales volume would increase by3000 units. What effect will this decision have on the operating income of Evans? Operating income will decrease by $70,000. Operating income will increase by $180,000. Operating income will increase by $105,000 Correct Answer Operating income will increase by $70,000