Use the following information to answer questions 15-19

John Masters is considering opening a bakery, initially, he plans to sell Danish.

Projected information for the product is as follows:

Details	Danish
Sugar	$90
Flour	$36
Butter and Milk	$150
Direct Labour	$24
Variable Production Overheads	$50
Selling Price	$1,000

For the first month, John expects to sell and produce 7,000 units. Total Fixed Costs is expected to be $2,600,000 for the month.

The contribution per unit for Danish is $:

Select one:

a.

650

b.

371

c.

7,429

d.

2,600

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Question 16

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If John decides to sell Danish and wants to breakeven, how much revenue should be generated?

Select one:

a.

$4,000,000

b.

$7,000,000

c.

$7,429,000

d.

$2,480,000

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Question 17

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The Contribution to Sales Ratio for Danish is:

Select one:

a.

35%

b.

65%

c.

54%

d.

154%

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Question 18

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What should the selling price be if John wanted to sell 10,000 units of Danish and generate profit of $2,000,000:

a.

$1260

b.

$505

c.

$810

d.

$26