Question :
71. Angelo’s a locally run and operated pizza parlor. Last month, : 1291718
71. Angelo’s is a locally run and operated pizza parlor. Last month, the restaurant broke-even when 400 pizzas were served. The average variable costs per pizza are $2.50 and fixed costs for the month totaled $6,000. What is the average selling price of a pizza? A. $15.00B. $12.50C. $17.50D. $6.00
72. Floyd’s Barbershop has fixed costs of $3,000 per month. Floyd currently breaks-even when it performs 400 haircuts a month. Floyd charges customers $10 per cut. What is Floyd’s variable cost per cut? A. $2.50B. $7.50C. $17.50D. $1.33
73. Floyd’s Barbershop has fixed costs of $3,000 per month. Floyd regularly performs 400 haircuts a month and he does not anticipate this to change. Each haircut has a variable cost of $4.00. If Floyd would like to earn a target profit of $2,000, what does he need to charge for each haircut? A. $12.50B. $16.50C. $11.50D. $8.50
74. Charlie’s Hotdog StandCharlie’s Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $.50. Charlie’s fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1,200. Refer to the Charlie’s Hotdog Stand information above. If Charlie does expand his business to three stands, how many additional hotdogs will need to be sold per month in order to break even? A. 1,000 hotdogsB. 600 hotdogsC. 200 hotdogsD. 480 hotdogs
75. Charlie’s Hotdog StandCharlie’s Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $.50. Charlie’s fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1,200. Refer to the Charlie’s Hotdog Stand information above. If Charlie does expand his business to three stands, how many hotdogs will need to be sold per month in order to earn a target profit of $5,000? A. 2,500 hotdogsB. 3,100 hotdogsC. 3,500 hotdogsD. 2,800 hotdogs
76. Grisham Inc. wishes to have an after-tax profit of $400,000. If Grisham’s tax rate is 35%, what is their before-tax profit? A. $615,385B. $540,000C. $1,142,857D. $660,000
77. Mulvaney Inc. ignored the effect of income taxes in its calculation of the sales volume needed to achieve a target profit of $1,000,000. If the company considers the impact of income taxes in its calculation, which of the following statements would be true? A. Total fixed costs will increase.B. Contribution margin per unit will decrease.C. Sales volume will increase to reach an after-tax profit.D. Sales price per unit will decrease.
78. When a company desires to achieve a after-tax profit, which of the following statements is true? A. Fixed costs will increase.B. As the tax rate increases, the number of units that need to be sold will decrease.C. The before-tax profit will need to be calculated.D. The contribution margin per unit will decrease.
79. Harrison Manufacturing has the following product information available:
Sales price
$50 per unit
Variable costs
$26 per unit
Fixed costs
$87,600
If Harrison is in the 35% tax bracket, how many units need to be sold in order to earn an after-tax target profit of $260,000? A. 16,667 unitsB. 14,483 unitsC. 22,282 unitsD. 20,317 units
80. Poole Products Inc. has the following product information available:
Sales price
$25 per unit
Variable costs
$10 per unit
Fixed costs
$36,000
If Poole is in the 40% tax bracket, how many units need to be sold in order to earn an after-tax target profit of $249,000? A. 30,067 unitsB. 12,360 unitsC. 27,667 unitsD. 31,667 units
