Question :
72.A company has fixed costs of $320,000 and a contribution : 1258579
72.A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the firm wants to earn a target $40,000 pretax income, how many units must be sold (rounded to the nearest whole unit)?
A. 24,000.
B. 21,333.
C. 18,666.
D. 2,667.
E. 20,000.
73.A company has fixed costs of $270,000, a unit contribution margin of $14, and a contribution margin ratio of 55%. If the firm wants to earn a target $60,000 pretax income, what amount of sales must the company make (rounded to the nearest whole dollar)?
A. 490,909.
B. 330,000.
C. 109,090.
D. 381,818.
E. 600,000.
74.Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?
A. $57,500.
B. $122,500.
C. $130,000.
D. $181,250.
E. $252,500.
75.Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?
A. 1,120.
B. 8,214.
C. 11,200.
D. 12,320.
E. 14,080.
76.Raven Company has a target of earning $70,000 pre-tax income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,000?
A. $23,333.
B. $36,000.
C. $300,000.
D. $353,333.
E. $420,000.
77.Use the following information to determine the margin of safety in dollars:
Unit sales50,000Units
Dollar sales$500,000
Fixed costs$204,000
Variable costs$187,500
A. $88,500.
B. $108,500.
C. $173,600.
D. $326,400.
E. $500,000.
78.Use the following information to determine the break-even point in sales dollars:
Unit sales50,000Units
Dollar sales$500,000
Fixed costs$204,000
Variable costs$187,500
A. $88,500.
B. $108,500.
C. $173,600.
D. $326,400.
E. $500,000.
79.Use the following information to determine the break-even point in units (rounded to the nearest whole unit):
Unit sales50,000Units
Unit selling price$14.50
Unit variable cost$7.50
Fixed costs$186,000
A. 12,828
B. 26,571
C. 8,455
D. 46,667
E. 24,800
80.Use the following information to determine the contribution margin ratio:
Unit sales50,000Units
Unit selling price$14.50
Unit variable cost$7.50
Fixed costs$204,000
A. 6.9%.
B. 48.3%.
C. 24.5%.
D. 51.7%.
E. 34.1%.
81.The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $130,000.
Sales (50,000 units) $1,000,000
Costs:
Direct materials$270,000
Direct labor240,000
Fixed factory overhead100,000
Variable factory overhead150,000
Fixed marketing costs 110,000
Variable marketing costs 50,000 920,000
Pretax income $80,000
A. 53,165.
B. 81,250.
C. 36,207.
D. 50,000.
E. 58,621.
