The Travel Pro Company sells two kinds of luggage. The company projected the following cost information for the two products:

	Rolling Bag				Carry-on Bag
Unit selling price	$	250			$	120
Unit variable cost	$	110			$	80
Number of units produced and sold		4,000				6,000

The company's total fixed costs are expected to be $280,000. Based on this information, what is the combined number of units of the two products that would be required to break-even with the projected sales mix (round your answer to the nearest whole unit)?

3,500 units

3,111 units

1,556 units

None of these is correct.

Broadway Company produces and sells two models of calculators. The following monthly data are provided:

	Standard				Premium
Unit selling price	$	100			$	150
Unit variable manufacturing cost	$	60			$	90
Unit variable selling and administrative cost	$	15			$	30
Number of units produced and sold		3,000				1,000

Total monthly fixed costs are expected to be $15,000. What is the break-even point in sales dollars at the expected sales mix? (Do not round your intermediate calculations.)

$19,231

$43,478

$68,182

$64,286

When drawing a cost-volume-profit graph, how are the axes labeled?

The horizontal axis would be labeled with dollars (of cost or revenue), while the vertical axis would be labeled with number of units (volume or activity).

The horizontal axis would be labeled with dollars (of total fixed costs), while the vertical axis would be labeled with dollars (of total variable costs).

The horizontal axis would be labeled with number of units (volume or activity), while the vertical axis would be labeled with dollars (of cost or revenue).

None of these answers is correct.

When performing sensitivity analysis, which of the following is an example of a variable that management may consider changing to answer "what if" questions?

Variable cost per unit

Sales price per unit

Fixed cost per unit

Both Variable cost per unit and Sales price per unit are correct.