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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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