Question : 102.A product sells for $30 per unit and has variable : 1236696

102.A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit, fixed costs increase to $900,000, and the selling price does not change, break-even point in units would:   

A.Increase by 20,000.

B.Equal 6,000.

C.Increase by 6,000.

D.Decrease by 20,000.

E.Not change.

103.Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester’s current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:   

A.30%.

B.60%.

C.40%.

D.10%.

E.70%.

104.Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester’s current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be:    

A.$300,000.

B.$400,000.

C.$325,000.

D.$500,000.

E.$375,000.

105.Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester’s current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in units would:   

A.Increase by 250.

B.Decrease by 250.

C.Increase by 12,000.

D.Decrease by 8,000.

E.Increase by 8,000.

106.The difference between sales price per unit and variable cost per unit is the:   

A.Gross profit from sales.

B.Gross margin per unit.

C.Fixed cost per unit.

D.Margin of safety per unit.

E.Contribution margin per unit.

107.The contribution margin per unit expressed as a percentage of the product’s selling price is the:   

A.Volume variance.

B.Margin of safety.

C.Contribution margin ratio.

D.Break-even point.

E.Rate of return on sales.

108.A company manufactures and sells a product for $120 per unit. The company’s fixed costs are $68,760, and its variable costs are $90 per unit. The company’s break-even point in units is:   

A.2,292.

B.573.

C.764.

D.327.

E.840.

109.A company manufactures and sells a product for $120 per unit. The company’s fixed costs are $68,760, and its variable costs are $90 per unit. The company’s break-even point in dollars is:   

A.$91,680.

B.$68,760.

C.$2,292.

D.$275,040.

E.$206,280.

110.A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company’s break-even point in dollar sales?   

A.$60,000.

B.$128,571.

C.$180,000.

D.$210,000.

E.$300,000.

111.Mason Company manufactures and sells shoelaces for $2.00 per pair. Its variable cost per unit is $1.70. Mason’s total fixed costs are $10,500. How many pairs must Mason Company sell to break even?   

A.5,250.

B.6,176.

C.35,000.

D.52,500.

E.61,760.