Question : 128.Lansbury Manufacturing produces hair brushes. The selling price $20 per : 1311718

128.Lansbury Manufacturing produces hair brushes. The selling price is $20 per unit and the variable costs are $8 per brush. Fixed costs per month are $4,800. If Lansbury sells 25 more units beyond breakeven, how much does profit increase as a result?

a.$300

b.$500

c.$200

d.$1,000

129.Hayduke Corporation reported the following results from the sale of 6,000 units in May: sales $300,000, variable costs $180,000, fixed costs $90,000, and net income $30,000. Assume that Hayduke increases the selling price by 10% on June 1. How many units will have to be sold in June to maintain the same level of net income?

a.4,800.

b.5,160.

c.5,400.

d.6,000.

130.Keene, Inc. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During March, 1,000 drives were sold. Fixed costs for March were $4.90 per unit for a total of $4,900 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Keene?

a.It is 10% higher than the original break-even point.

b.It decreases about 14 units.

c.It decreases about 35 units.

d.It depends on the number of units the company expects to produce and sell.

131.Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160,000, how many units must be sold to earn income of $80,000?

a.120,000 units

b.80,000 units

c.30,000 units

d.1,200,000 units

132.How much sales are required to earn a target income of $160,000 if total fixed costs are $200,000 and the contribution margin ratio is 40%?

a.$600,000

b.$400,000

c.$900,000

d.$660,000

133.Farmers’ Industries has fixed costs of $400,000 and variable costs are 60% of sales. How much will Farmers report as sales when its net income equals $40,000?

a.$1,100,000

b.$733,333

c.$1,040,000

d.$264,000

134.Murphy Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $8 of variable costs to make. During April, 700 drives were sold. Fixed costs for April were $4 per unit for a total of $2,800 for the month. How much does Murphy’s operating income increase for each $1,000 increase in revenue per month?

a.$600

b.$400

c.$14,000

d.Not enough information to determine the answer.

135.Greg’s Golf Carts produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each. If sales of Model 26 increase by 100 units, how much will profit change?

a.$5,000 increase

b.$17,500 increase

c.$22,500 increase

d.$35,000 increase

136.Wendy Industries produces only one product. Monthly fixed expenses are $12,000, monthly unit sales are 2,500, and the unit contribution margin is $10. How much is monthly net income?

a.$25,000

b.$37,000

c.$0

d.$13,000

137.A company desires to sell a sufficient quantity of products to earn a profit of $300,000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600,000, how many units must be sold to earn net income of $300,000?

a.168,750 units

b.112,500 units

c.90,000 units

d.67,500 units