XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $80,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $10,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is the company's breakeven point in sales dollars?

Multiple Choice

• $40,000
• $120,000
• $240,000
• $300,000

XYZ Inc. sells a single product for $20 per unit. Variable production costs are $4 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. By how much would the company's net operating income increase if variable costs were reduced by $3 per unit?

Multiple Choice

• $12,000
• $20,000
• $40,000
• 24000

XYZ Inc. sells a single product for $10 per unit. Variable production costs are $7 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is ABC's contribution margin per unit?

Multiple Choice

• $2
• $6
• $5
• $10

XYZ Inc. sells a single product for $20 per unit. Variable production costs are $4 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. By how much would the company's net operating income increase if selling price was increased by $6 per unit? Assume no change in sales volume.

Multiple Choice

• $48,000
• $20,000
• $40,000
• $8,000

XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $50,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $30,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. How many units must the company sell to achieve a pre-tax profit of $480,000?

Multiple Choice

• 20,000
• 26,667
• 30,000
• 70,000

XYZ Inc. sells a single product for $10 per unit. Variable production costs are $5 per unit. Fixed overhead costs amount $40,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, the company had no sales or production. What was ABC's net operating income or loss?

Multiple Choice

• $17,000 loss
• $50,000 profit
• $27,000 loss
• $45,000 loss

XYZ Inc. sells a single product for $27 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $50,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $30,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. How many units must the company sell to achieve a pre-tax profit of $820,000?

Multiple Choice

• 20,000
• 126,667
• 130,000
• 150,000

XYZ Inc. sells a single product for $10 per unit. Variable production costs are $5 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 6,000 units. What was ABC's net operating income? Multiple Choice $9,000 $22,000 $27,000 $15,000

XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $20,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month. Last month, the company produced and sold 10,000 units. What is the company's margin of safety?

Multiple Choice

• $220,000
• $20,000
• $160,000
• $100,000

XYZ Inc. sells two products, A and B. The selling price, variable cost and contribution margin per unit of product are shown below:

Product	A	B
Selling Price	$	24	$	28
Variable Cost	$	17	$	26
Contribution Margin	$	7	$	2

Fixed costs amount to $160,000. The company sells twice as many units of A as it does B. How many units of each product does the company have to sell to breakeven?

Multiple Choice

• A: 10,000 units; B: 5,000 units.
• A: 20,000 units; B: 10,000 units.
• A: 12,000 units; B: 4,000 units.
• A: 9,000 units; B: 3,000 units.

XYZ Inc. sells two products, A and B. The selling price, variable cost and contribution margin per unit of product are shown below:

Product	A	B
Selling Price	$	32	$	36
Variable Cost	$	17	$	30
Contribution Margin	$	15	$	6

Fixed costs amount to $127,500. The company sells 3 times as many units of A as it does B. How many units of each product does the company have to sell to breakeven?

Multiple Choice

• A: 10,000 units; B: 5,000 units.
• A: 15,000 units; B: 5,000 units.
• A: 7,500 units; B: 2,500 units.
• A: 9,000 units; B: 3,000 units.

XYZ Inc. sells a single product for $20 per unit. Variable production costs are $4 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. By how much would the company's net operating income increase if variable costs were reduced by $4 per unit?

Multiple Choice

• $12,000
• $20,000
• $40,000
• $32,000

XYZ Inc. sells a single product for $20 per unit. Variable production costs are $4 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. By how much would the company's net operating income increase if selling price was increased by $5 per unit? Assume no change in sales volume.

Multiple Choice

• $12,000
• $20,000
• $40,000
• $8,000

XYZ Inc. sells a single product for $40 per unit. Variable production costs are $8 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is ABC's contribution margin ratio?

Multiple Choice

• 40%
• 30%
• 70%
• 10%