The Case Company produces two types of phone protective cases: the plain model and the fancy model. Last year, Case sold 100,000 plain cases and 50,000 fancy cases. Also given: Total fixed costs are $70,000. : Plain Fancy Selling price/unit $13.00 $16.00 Variable cost/unit 5.00 7.00

What is the weighted average CM (contribution margin) per unit (using sales mix as the weights)?

a. $5.33

b. $3.00

c. $4.33

d. $8.33 .

Refer to the data in question 20. What is the total break-even point in units (rounded)?

a. 8,400

b. 5,600

c. 2,800

d. Cannot be determined

22. Refer to the data in question 20. If Case Company sold 75,000 units of each product, then the break-even point in units would:

a. Increase

b. Decrease

c. Stay the same

d. Cannot be determined

23. On January 1, Queens Corp. increased its direct manufacturing labor wage rates. All other budgeted costs and revenues were unchanged. How did this increase affect the companys budgeted breakeven point and budgeted margin of safety, respectively?

a. Increase/Increase

b. Increase/Decrease

c. Decrease/Decrease

d. Decrease/Increase

24. For a cost or revenue to be relevant to a particular decision, the cost or revenue must

a. Differ between the alternatives being considered

b. Be a past cost

c. Be a future cost

d. Differ between the alternatives being considered and be a future cost or revenue