QUESTION 11

1. What is the breakeven point in units with a selling price per unit of $100, total fixed expenses of $250,000, and variable expense per unit of $50?

   	a.	2500 units
   	b.	7500 units
   	c.	10,000 units
   	d.	5000 units

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What inputs are used to calculate the flexible budget?

	a.	Actual quantity X standard price
	b.	Standard quantity allowed for actual output X Standard price
	c.	Actual quantity X Actual price
	d.	standard quantity X actual price

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Selected financial information for Doors, Inc. is given below:

Sales = $5,000,000

Variable expenses = $2,000,000

Fixed expenses = $1,000,000

What is the company's operating leverage?

	a.	3.0
	b.	0.6
	c.	2.0
	d.	1.5

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QUESTION 22

1. Doors, Inc. has a goal of $60,000 profit for the year.

   Fixed expenses total $40,000.

   The contribution margin per unit is $75.

   How many units must be sold this year to reach the target profit? (Round up to the next whole unit)

   	a.	800 units
   	b.	534 units
   	c.	3,200 units
   	d.	1,334 units