Question
XYZ Inc. sells a single product for $40 per unit. Variable production costs are $28 per unit. Fixed overhead costs amount $10,000 per month. Variable
XYZ Inc. sells a single product for $40 per unit. Variable production costs are $28 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 variable expense ratio?
Multiple Choice
- 40%
- 20%
- 80%
- 10%
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 $910,000?
Multiple Choice
- 20,000
- 126,667
- 130,000
- 165,000
XYZ Inc. sells a single product for $40 per unit. Variable production costs are $28 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%
- 20%
- 70%
- 10%
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 7,000 units. What was ABC's net operating income?
Multiple Choice
- $9,000
- $22,000
- $27,000
- $13,000
XYZ Inc. sells a single product for $30 per unit. Variable production costs are $9 per unit. Fixed overhead costs amount $52,000 per month. Variable selling costs are $6 per unit. Fixed selling costs are $8,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is the company's breakeven point in units (rounded)?
Multiple Choice
- 4,000
- 2,667
- 3,000
- 5,000
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