Question 1

In September, Bonita Company had the following financial statement amounts related to producing 400 units:

Direct materials	$25000
Depreciation expense	11000
Sales revenue	99000
Direct labour	24000
Rent expense	29000

What is the break-even point in units, rounded to the nearest whole number?

25 units

125 units

150 units

320 units

Question 2

Bramble Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $10 of variable costs to make. During April, 1300 drives were sold. Fixed costs for April were $3 per unit for a total of $3900 for the month. If variable costs decrease by 20%, what happens to the break-even level of units per month for Bramble Company?

It is 20% higher than the original break-even point.

It decreases about 65 units.

It decreases about 78 units.

It depends on the number of units the company expects to produce and sell.