Question 11.

Randy's tireland makes a product that sells for $60 per unit and has $49 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement?

Question 12

Ritz Furniture has a contribution margin ratio of 0.11. If fixed costs are $173,200, how many dollars of revenue must the company generate in order to reach the break-even point?