Question : 26) Frazer Corp sells several products. Information of average revenue : 1212056

 

26) Frazer Corp sells several products. Information of average revenue and costs is as follows:

 

Selling price per unit$28.50

Variable costs per unit:

Direct material$5.50

Direct manufacturing labor$1.15

Manufacturing overhead$0.85

Selling costs$2.50

Annual fixed costs$125,000

 

What is the operating income earned if the company sells 15,000 units?

A) $162,750

B) $150,000

C) $148,500

D) $152,500

27) Frazer Corp sells several products. Information of average revenue and costs is as follows:

 

Selling price per unit$28.50

Variable costs per unit:

Direct material$5.50

Direct manufacturing labor$1.15

Manufacturing overhead$0.85

Selling costs$2.50

Annual fixed costs$125,000

 

If the company decides to lower its selling price by 12.25%, the operating income is reduced by ________.

A) $52,500

B) $50,500

C) $55,500

D) $29,500

 

Answer the following questions using the information below:

 

The following information is for High Corp:

 

Selling price$60 per unit

Variable costs$40 per unit

Total fixed costs$125,000

 

28) The number of units that High Corp must sell to reach targeted operating income of $25,000 is ________.

A) 6,000 units

B) 7,500 units

C) 3,334 units

D) 4,334 units

29) If targeted operating income is $50,000, then targeted sales revenue is ________.

A) $525,052

B) $533,333

C) $498,133

D) $517,072

 

Answer the following questions using the information below:

 

Stephanie’s Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.

 

30) What is the Bridal Shoppe’s operating income when 200 dresses are sold?

A) $30,000

B) $80,000

C) $200,000

D) $100,000

 

31) How many dresses are sold when operating income is zero?

A) 225 dresses

B) 150 dresses

C) 100 dresses

D) 90 dresses

 

32) Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 200 procedures this month.What is the breakeven point for the month assuming that Dr. Hunter plans to perform the procedure 200 times?

A) 40 times

B) 30 times

C) 20 times

D) 10 times

33) Pearl Lights sells only pearl necklaces. 8,000 units were sold resulting in $240,000 of sales revenue, $60,000 of variable costs, and $40,000 of fixed costs. The breakeven point in total sales dollars is ________.

A) $40,000

B) $53,334

C) $100,000

D) $58,334

 

34) Zealz Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $70,000 for the next month at the projected sales level of 2,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. What is the current breakeven point in terms of number of units?

A) 1,400 units

B) 2,250 units

C) 3,333 units

D) 1725 units

 

35) Lights Manufacturing produces a single product that sells for $125. Variable costs per unit equal $50. The company expects total fixed costs to be $75,000 for the next month at the projected sales level of 1,000 units. What is the current breakeven point in terms of number of units?

A) 800 units

B) 1033 units

C)  667 units

D) 1,000 units

 

 

 

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