Question
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
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
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