Use following information for question 11 to 18

Target Candy Company(TCC) is a retailer of local candies. The following are weekly sales and operating costs information: Expected weekly sales units 500 units Sales Revenue $1,125 Total variable costs $ 250 Total fixed costs $ 500

11. What is the price per unit?

$0.50

$2.25

$2.75

none of the above

12. What is the variable costs per unit?

$0.50

$2.25

$2.75

$ 5.50

13. What is the expected weekly total contribution margin?

$825

$885

$875

$855

14. What is the break-even quantity in units?

200 units

286 units

308 units

320 units

15. If weekly expected sales is 250 units, what will be the effect on weekly income?

profit

loss

break-even

cannot be determine

16. If expected sales were 350 units, determine the margin of safety in units (Q):

28 units

30 units

40 units

64 units

17. How many units you need to sell to generate after tax income is $800 and tax rate is 20%?

690 units

857 units

925 units

960 units

18. What is the maximum amount you willing to spend on advertising & promotion that will lead to 20% increase in sales units above current expected sales of 400 units?

$180

$160

$150

$140