Question : 102.A product sells for $30 per unit and has variable : 1258556

 

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.

 

 

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