Which of the following is not relevant information in a decision whether old equipment presently being used should be replaced by new equipment?

A. The cash price of the new equipment.

B. The book value of the old equipment.

C. The salvage value of the old equipment.

D. The cost savings if the new equipment is purchased.

Concord Corporation is planning to sell 200000 hammers for $9 per unit. The contribution margin ratio is 20%. If Concord will break even at this level of sales, what are the fixed costs?

A. $1440000

B. $440000

C. $800000

D. $360000

A company sells a product which has a unit sales price of $5, unit variable cost of $2 and total fixed costs of $240000. The number of units the company must sell to break even is

A. 80000 units.

B. 480000 units.

C. 48000 units.

D. 120000 units.