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QUESTION 21 Atlanta, Inc. produces a single product and reports the following data: = . . Sales price $8.50 per unit Variable cost = $5.25
QUESTION 21 Atlanta, Inc. produces a single product and reports the following data: = . . Sales price $8.50 per unit Variable cost = $5.25 per unit Fixed cost = $22,000 per month Current sales volume = 10,000 units per month The firm believes that its sales volume will go up to 12,000 units if the sales price is reduced to $7.50. How would this change affect the firm's operating income? A. Income will decrease by $10,500 B. Income will increase by $5,500 o C. Income will decrease by $5,500 O D. Income will increase by $10,500 QUESTION 22 Honolulu, Inc. produces sells its product for $800 per unit. Variable costs are $470 per unit, and fixed costs are $10,230 per month. If the firm expects to sell 60 units next month, what is the firm's margin of safety in sales revenue for next month? A. $48,000 O B. $23,200 o C. $24,800 OD. $13,630 QUESTION 23 Boise, Inc. makes two products. Product X has a contribution margin of $4.00 per unit, and Boise expects to sell 2,500 units of X next month. Product Y has a contribution margin of $4.80 per unit, and Boise expects to sell 2,000 units of Y next month. What is the weighted-average contribution per unit of the mix? (Round your answer to the nearest cent.) O A. $4.36 B. $8.80 O C. $4.40 O D. $4.44
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