Question :
61. Charlie’s Hotdog Stand sells hotdogs for $2.50 each. The variable : 1295598
61. Charlie’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. 1,000B. 600C. 200D. 480
62. Charlie’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. 2,500B. 3,100C. 3,500D. 2,800
63. LMN Manufacturing produces two products – Product S and Product W. The following information is available related to each product:
Product S
Product W
Sales price per unit
$25
$40
Variable costs per unit
17
22
Product S accounts for 40% of total product sales and Product W accounts for the rest. LMN’s total fixed costs are $24,990. How many total number of products need to be sold in order for the company to break-even? A. 1,922B. 2,403C. 962D. 1,785
64. RET Manufacturing produces two types of children’s products – Rubles and Twizzles. The following information is available related to each product:
Rubles
Twizzles
Sales price per unit
$15
$24
Variable costs per unit
5
12
Rubles account for 60% of total product sales and Twizzles accounts for the rest. RET’s total fixed costs are $30,024. Refer to the RET Manufacturing information above. How many total number of products need to be sold in order for the company to break-even? A. 2,780B. 2,730C. 5,560D. 2,176
65. RET Manufacturing produces two types of children’s products – Rubles and Twizzles. The following information is available related to each product:
Rubles
Twizzles
Sales price per unit
$15
$24
Variable costs per unit
5
12
Rubles account for 60% of total product sales and Twizzles accounts for the rest. RET’s total fixed costs are $30,024. Refer to the RET Manufacturing information above. How many Rubles need to be sold in order for the company to break-even? A. 1,638B. 1,668C. 819D. 2,780
66. Crabtree Inc. produces two types of products – Gizmos and Gadgets. The following information is available related to each product:
Gizmos
Gadgets
Sales price per unit
$48
$60
Variable costs per unit
21
24
Percentage of total sales
66.67%
33.33%
If total fixed costs are $36,000, how many total units need to be sold in order for the company to break even? (round computations to nearest hundredth) A. 581B. 1,162C. 1,200D. 405
67. Crabtree Inc. produces two types of products – Gizmos and Gadgets. The following information is available related to each product:
Gizmos
Gadgets
Sales price per unit
$80
$50
Variable costs per unit
36
22
Three-fourths of the products sold are Gizmos and one-fourth are Gadgets. If total fixed costs are $50,000, how many total units need to be sold in order for the company to break even? A. 1,250B. 1,389C. 2,500D. 690
68. Village Manufacturing produces two types of products – Card Games and Puzzles. The following information is available related to each product:
Card Games
Puzzles
Sales price per unit
$6.00
$15.00
Variable costs per unit
2.00
3.50
60% of the products sold are Card Games and 40% are Puzzles. Refer to the Village Manufacturing information above. If total fixed costs are $24,500, how many Puzzles need to be sold in order for the company to break-even? A. 852B. 1,265C. 1,400D. 3,500
69. Village Manufacturing produces two types of products – Card Games and Puzzles. The following information is available related to each product:
Card Games
Puzzles
Sales price per unit
$6.00
$15.00
Variable costs per unit
2.00
3.50
60% of the products sold are Card Games and 40% are Puzzles. Refer to the Village Manufacturing information above. If total fixed costs are $24,500, how many Card Games need to be sold in order for the company to break-even? A. 2,100B. 3,675C. 4,200D. 3,500
70. When calculating the break-even point in a multi-product environment, which of the following statements is false? A. The contribution margin per unit for each product needs to be determined.B. Total fixed costs need to be determined.C. Each product is assumed to count for an equal percentage of total sales.D. The weighted-average contribution margin per unit needs to be determined.
