Excellent Mullen Company has a contribution margin (CM) per unit of $30 and a co
ID: 2549538 • Letter: E
Question
Excellent Mullen Company has a contribution margin (CM) per unit of $30 and a contribution each un non margin (CM) ratio of 60%, How much is the selling or sales price (SP) of A) $50 B) $75 C) $18 D) Cannot be determined without more information. and 20. At the break-even point (BEP) of 2,000 units, variable costs (V/C) are $55,000, fixed costs (FIC) are $34,000. How much is the selling price (SP) per unit? A) $44.50 B) $10.50 C) $17.00 D) Not enough information 21. A company has total fixed costs (F/C) of $160,000 and a contribution margin (CM) ratio of 20%. The total sales necessary to break even (BEP SS) are how much? A) B) $800,000. C) $200,000. D) $192,000. $640,000. 22. A company sells a product which has a unit sales price (SP) of S5, unit variable cost (V/C) of S3 and total fixed costs (F/C) of S150,000. The number of units the company must sell to break even is (BEP units) A) 75,000 units. B) 30,000 units C) 300,000 units. D) 50,000 units 23. are 75% of the unit selling Fixed costs (FC) are S900 000 and the variable costs (VC) price. What is the break-even point in dollars (BEP SS)? A) $2.100,000 B) $2,700,000 C) $3,600,000 D) $1,200,000 Page 5Explanation / Answer
19.
Price = 30 / 0.6
= 50
Option A is correct.
20.
let Selling be 44.5 then profit would come down to Nil.
= 2000 * 44.5 - 55000 - 34000
= 0
Option A is correct.
21.
Total sales = 160000 / 0.20
= 800000
Option B is correct
22.
Break even sales = Fixed cost / contribution per unit
= 150000 / 2
= 75000 Units
option A is correct.
23.
Break even point would be = 900000 / 0.25
=3600000
Option C is correct.
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