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Use the following information to answer questions 9 through 12: Company A currently sells a product for $2 each. Fixed cost and unit variable cost
Use the following information to answer questions 9 through 12: Company A currently sells a product for $2 each. Fixed cost and unit variable cost are $12,000 and $0.80, respectively. 9. What is the break-even point in units and in sales dollars, respectively? a. 10,000 units and $20,000 b. 12,000 units and $24,000 c. 10,000 units and $15,000 d. 20,000 units and $20,000 10. What is the contribution margin ratio? 20% b. 30% 40% d. 60% a. c. 11. To reach a target profit of $33,000, how many units of output should be sold? a. 22,500 units b. 31,750 units c. 37,500 units d. 42,000 units 12. If variable cost per unit is increased by 15%, fixed cost is increased to $15,120, and the unit price remains the same, what is the new break-even point in sales dollars? a. $22,000 b. $24,000 c. $26,000 d. $28,000
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