Question
Wimpy Inc. produces and sells a single product. The selling price of the product is $185.00 per unit and its variable cost is $55.50 per
Wimpy Inc. produces and sells a single product. The selling price of the product is $185.00 per unit and its variable cost is $55.50 per unit. The fixed expense is $404,670 per month.
The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
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$1,348,900
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$944,230
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$578,100
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$404,670
Derst Inc. sells a particular textbook for $37. Variable expenses are $27 per book. At the current volume of 48,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
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$480,000
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$1,776,000
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$2,256,000
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$1,296,000
Ferkil Corporation manufacturers a single product that has a selling price of $15.00 per unit. Fixed expenses total $51,000 per year, and the company must sell 8,500 units to break even. If the company has a target profit of $15,000, sales in units must be:
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10,227 units
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9,500 units
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11,000 units
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11,900 units
Mcmurtry Corporation sells a product for $280 per unit. The product's current sales are 13,900 units and its break-even sales are 10,425 units. The margin of safety as a percentage of sales is closest to:
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25%
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33%
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75%
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67%
Bristo Corporation has sales of 2,375 units at $40 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, the degree of operating leverage is:
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1.90
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9.50
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2.07
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7.60
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,920 and variable expenses of $6,972. Product Y45E had sales of $26,040 and variable expenses of $11,718. The fixed expenses of the entire company were $22,300. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:
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would decrease.
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would increase.
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could increase or decrease.
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would not change.
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