Question 1 4 pts Which of the following is a variable cost? straight-line depreciation O rent expense O salary of production manager O direct materials Question 2 4 pts Which of the following costs changes in total when volume changes? O variable costs O mixed costs fixed costs O production costs Question 3 4 pts 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. What is the contribution margin ratio? 37.5% 40.0% O 60.0% 90.0% Question 4 4 pts Our company sells a product for $120 per unit. Variable costs are $90 per unit and fixed costs are $9,000. The company expects to sell 500 units this year. How many units must we sell to break even? 300 0 320 O 360 400 Question 5 4 pts Which of the following is true? A decrease in fixed costs will increase the breakeven point in units. Fixed costs divided by the contribution margin ratio equals the breakeven point in sales dollars. Contribution margin divided by fixed costs equals the breakeven point in unit sales. O Breakeven represents the sales level at which the company's contribution margin is $0. Question 6 4 pts 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. What are the required sales in dollars needed to earn a profit of $7,200? $60,000 O $63,000 O $57,000 O $61,500 U Question 7 4 pts Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,000 and $3,200 for the months of January and September. If we produced 1,050 and 600 units in these months, what was the fixed cost associated with the utilities bill? O $435.50 $485.00 $590.00 $800.00 Question 8 4 pts Which of the following is true? An increase in sales price per unit decreases the contribution margin per unit. O An increase in sales price per unit increases the number of units required to break even When the sales price per unit decreases, the breakeven point increases When the sales price per unit increases, the contribution margin per unit remains the same. Question 9 4 pts 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 the sales price per unit decreased by $10? 500 667 1,000 O 1,200 Question 10 4 pts Our company sells its product for $80 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 450, and we expect to sell 400 units. What is the margin of safety in dollars? O ($2,000) O $4,000 O ($4,000) O $2,000
