Question 11.11. At the high level of activity in August, 7,000 machine hours were run and power costs were $16,000. In April, a month of low activity, 3,000 machine hours were run and power costs amounted to $8,000. Using the high-low method, what is the estimated fixed cost element of power costs? (Points : 2)

$2,000. $8,000. $14,000. $16,000.

Question 12.12. A company sells a product which has a unit sales price of $5, unit variable cost of $2 and total fixed costs of $180,000. What is the number of units the company must sell to break even? (Points : 2)

36,000 units 60,000 units 90,000 units 540,000 units

Question 13.13. A Company has a contribution margin per unit of $21 and a contribution margin ratio of 60%. How much is the selling price of each unit? (Points : 2)

$12.60 $35.00 $50.00 $52.50

Question 14.14. How much sales are required to earn a target net income of $160,000 if total fixed costs are $300,000 and the contribution margin ratio is 40%? (Points : 2)

$500,000 $750,000 $766,667 $1,150,000

Question 15.15. A Company produces drives for computers, which it sells for $20 each. Each drive costs $15 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? (Points : 2)

20% 25% 75% 80%