Question
S 3-11 ARE 5 POINTS EACH 3. If the sale price per unit is $8, the unit contribution margin is 53, and total fixed expenses
S 3-11 ARE 5 POINTS EACH 3. If the sale price per unit is $8, the unit contribution margin is 53, and total fixed expenses are $19,500, the breakeven sales in units is: 4. If the sale price per unit is $24.50, the variable expense per unit is $16, and total fixed expenses are $324,000, the breakeven sales in dollars is: 5. 6. If the sale price per unit is $8.50, the variable expense per unit is $6.75, and the breakeven sales in dollars is $311,500, total fixed expenses are: If the sale price per unit is $32, total fixed expenses are $45,000, and the breakeven sales in dollars is $180,000, the variable expense per unit is: Table 1 Oakland Company management has budgeted the following amounts for its next fiscal year: Total fixed expenses $832,500 Sale price per unit Variable expenses per unit $40 $25 7. Refer to Table 1. What is the breakeven sales in units: 8. Refer to Table 1. If Oakland Company can reduce fixed expenses by $22,500, breakeven sales in units will change by how much: 9. Refer to Table 1. If Oakland Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units. What effect will this have on operating income? 10. Refer to Table 1. If Oakland Company can reduce fixed expenses by $41,625, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? 11. Refer to Table 1. If fixed expenses increase by 10%, to maintain the original breakeven sales in units, the sale price per unit would have to change by how much
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