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quires Respondus LockDown Browser ime Left.2:37:39 Tate Corporon: Attempt 1 You

ID: 1174073 • Letter: Q

Question

quires Respondus LockDown Browser ime Left.2:37:39 Tate Corporon: Attempt 1 You have fixed costs of $500,000 and variable costs of $3 per unit. Your product sells for $7 per unit and you predict sales of 200,000 units. What is the breakeven point? 166,667 units $166,117 $125,000 125,000 units 25,000 units Question 29 (1 point) d Which of the following is a correct statement about uses of linear programming (LP) and breakeven (BEP) LP and BEP focus primarily on resource planning and costs LP and BEP are used primarily for planning projects LP and BEP are usefuf@or scheduling ideal combinations of production inputs. LP and BEP are qualitative techniques for planning. None of the above is true about LP and BEP 5 6 7 8 WER

Explanation / Answer

28.

D.125000 unit

Working note:

Breakeven point = Fixed cost / (Price – variable cost) = 500000/(7-3)

Breakeven point = 125000 units

29.

A

It is the primary objective of LP and BEP analysis.

30.

B

These tools are based upon the past data, but cannot accurately create a present scenario.

31.

D

It is the forecasting that is done for the future.

32.

C

Breakeven analysis will tell the price so that no profit no loss is achieved at a given price and quantity level.

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