Question 1

Company A has the following information on its management books:

Sales Volume: 5,000 units

Price per Unit: $10

Variable Costs per Unit: $4

Fixed Costs per Unit: $5

What is the contribution margin per unit?

$6

$9

$5

$1

Question 2

Company B has the following information on its management books:

Sales Volume: 5,000 units

Price per Unit: $10

Variable Costs per Unit: $6

Fixed Costs per Unit: $5

What is the total contribution margin?

$20,000

-$5,000

$25,000

$55,000

Question 3

Company C has the following information on its management books:

Price per Unit: $16

Variable Costs per Unit: $4

Total Fixed Costs: $48,000

How many units must Company C sell to break even?

12,000

3,000

4,000

2,400

Question 4

Company D has the following information on its management books:

Price per Unit: $64

Variable Costs (Manufacturing) per Unit: $36

Variable Costs (Non-manufacturing) per Unit: $12

Total Fixed Costs (Manufacturing): $140,000

Total Fixed Costs (Non-manufacturing): $52,000

How many units must Company D sell to break even?

12,000

4,000

1,000

5,000

Question 5

Company E has the following information on its management books:

Total Fixed Costs: $30,000

Sales Volume Forecast: 6,000 units

Variable Costs per Unit: $2

What price must Company E charge to break even?

$7

$2

$5

$3

Question 6

Company F has the following information on its management books:

Total Fixed Costs (Manufacturing): $42,000

Total Fixed Costs (Non-manufacturing): $30,000

Sales Volume Forecast: 6,000 units

Variable Costs (Manufacturing) per Unit: $9

Variable Costs (Non-manufacturing) per Unit: $6

What price must Company F charge to break even?

$16

$27

$11

$12

7.

Question 7

Company G has the following information on its management books:

Price per Unit: $8

Variable Costs per Unit: $3

Total Fixed Costs: $20,000

How many units must Company G sell to make a profit of $30,000?

6,000

10,000

4,000

6,250

8.

Question 8

Company H has the following information on its management books:

Total Fixed Costs: $60,000

Sales Volume Forecast: 10,000 units

Variable Costs per Unit: $4

What price must Company H charge to make a profit of $30,000?

$10

$6

$13

$7

Question 9

Company J sells two products. Product A has a contribution margin per unit of $10. Product B has a CM per unit of $25. Total fixed costs for the year are $100,000. Which of the following sales mixes can Company J sell to break even?

1 point

Product A: 2,500 units; product B: 3,000 units

Product A: 3,000 units; product B: 2,700 units

Product A: 2,700 units; product B: 2,500 units

Product A: 2,500 units; product B: 2,700 units

Question 10

Company K sells a product in two models. The basic model has a price per unit of $200 and variable costs per unit of $120. The deluxe model has a price per unit of $250 and variable costs per unit of $150. Its typical sales mix is 70% basic models and 30% deluxe models. Total fixed costs for the year are $86,000. How many basic and deluxe units must Company K sell to break even?

Basic model: 770 units; deluxe model: 330 units

Basic model: 665 units; deluxe model: 285 units

Basic model: 630 units; deluxe model: 270 units

Basic model: 700 units; deluxe model: 300 units

Question 11

Company L sells a product in two models. The basic model has a contribution margin per unit of $80 and the deluxe model has has a contribution margin per unit of $100. Its typical sales mix is 60% basic models and 40% deluxe models. Total fixed costs for the year are $88,000. How many basic and deluxe units must Company L sell to make a profit of $66,000?

Basic model: 760 units; deluxe model: 1,140 units

Basic model: 1,140 units; deluxe model: 760 units

Basic model: 1,050 units; deluxe model: 700 units

Basic model: 700 units; deluxe model: 1050 units

Question 12

Breakeven analysis of three products is similar to the analysis of two products. Company M sells a product in three models. The model A has a contribution margin per unit of $10. The model B has a CM per unit of $12. And the model C has a CM per unit of $15. Its typical sales mix is 50% model A, 30% model B and 20% model C. Total fixed costs for the year are $174,000. How many basic and deluxe units must Company M sell to break even?

1 point

Model A: 7,500 units; Model B: 4,500 units; Model C: 3,000 units

Model A: 7,600 units; Model B: 4,560 units; Model C: 3,040 units

Model A: 5,000 units; Model B: 3,000 units; Model C: 2,000 units

Model A: 7,300 units; Model B: 4,380 units; Model C: 2,920 units

Please get answer with explanation