Question 2 (2 points) Assume total fixed costs of $160,000, variable costs per u

Question

Question 2 (2 points) Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target operating income of $50,000? 1 5,000 units 2) 25,000 units 3) 40,000 units )52,500 units Question 1 (2 points)B Fixed costs are $600,000 and the variable costs are 75% of the unit selling price, what is the break-even point in dollars? 1) $1,400,000 2) $1,800,00o 3) $2,400,000 4) $800,000 Question 3 (2 points) Assume a sales volume of 6,000 units, unit selling price of $20, unit variable cost of $12, and total fixed costs of $20,000. What is the margin of safety in sales dollars? 1) $25,000 2) $50,000 3) $70,000 4) $120,000 Question 4 (2 points) Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18,000. What is the breakeven point? 1) 45,000 units 2) $45,000 3) 37,500 units O 4) $37,500 Question 5 (2 points) Assume a sales price per unit of $20, variable cost per unit $16, and total fixed costs of $168,000. What is the breakeven point? 1) 42,000 units 2) 10,500 units 3) $42,000 4) $10,500

Explanation / Answer

2) Required sales units = (160000+50000)/4 = 52500 Units

So answer is 4) 52500 Units

1) Break even sales = 600000/.25 = 2400000

So answer is 3) $2400000

3) Break even point = 20000/(20-12) = 2500 Units

Margin of safety = (6000-2500)*20 = $70000

So answer is 3) $70000

4) Break even point = 18000/10 = 1800 Units

5) Break even point = 168000/(20-16) = 42000 Units

So answer is a) 42000 Units

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