Question 6

Use the following information to answer questions 6 to 10:

Fixed costs

240,000

Selling price per unit

18.00

Variable costs per unit

12.60

Target profit

120,000

The breakeven point in units is closest to:

Question 6 options:

a)

44,444 units

b)

55,500 units

c)

66,667 units

d)

88,888 units

Question 7

The breakeven point in dollars is closest to:

Question 7 options:

a)

$1,200,000

b)

$841,120

c)

$800,000

d)

$560,747

Question 8

The number of units to be sold to achieve the target profit is closest to:

Question 8 options:

a)

44,444 units

b)

55,500 units

c)

66,667 units

d)

88,888 units

Question 9

The sales dollars needed to achieve the target profit is closest to:

Question 9 options:

a)

$1,200,000

b)

$841,120

c)

$800,000

d)

$560,747

Question 10

If expected sales are 50,000 units, the margin of safety is closest to:

Question 10 options:

a)

11.1%

b)

12.5%

c)

30%

d)

50%