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LOS d: Calculate the breakeven quantity of sales and determine the company's net income at various sales levels.
Q1. Given: price = $35 per unit, variable cost = $15 per unit, and total cost = $200,000. If sales equal 10,000 units, what is the firm's breakeven sales quantity?
A) 1,750 units.
B) 3,000 units.
C) 2,500 units.
Q2. Jayco, Inc. has a division that makes red ink for the accounting industry. The unit has fixed costs of $10,000 per month, and is expected to sell 40,000 bottles of ink per month. If the variable cost per bottle is $2.00 what price must the division charge in order to breakeven?
A) $2.50.
B) $2.75.
C) $2.25.
Q3. Annah Korotkin is the sole proprietor of CoverMeUp, a business that designs and sews outdoor clothing for dogs. Each year, she rents a booth at the regional Pet Expo and sells only blankets. Korotkin views the Expo as primarily a marketing tool and is happy to breakeven (that is, cover her booth rental). For the last 3 years, she has sold exactly enough blankets to cover the $750 booth rental fee. This year, she decided to make all blankets for the Expo out of high-tech waterproof/breathable material that is more expensive to produce, but that she believes she can sell for a higher profit margin. Information on the two types of blankets is as follows:
|
Per Unit |
Last Year’s (Basic) Blanket |
This Year’s (New) Blanket |
|
Sales Price |
$25 |
$40 |
|
Variable Cost |
$20 |
$33 |
Assuming that Korotkin remains most interested in covering the booth cost (which has increased to $840), how many more or fewer blankets (new style) does she need to sell to cover the booth cost? To cover this year’s booth costs, Korotkin needs to sell:
A) 30 fewer blankets than last year.
B) 42 fewer blankets than last year.
C) 42 more blankets than last year.
Q4. Annual fixed costs at King Mattress amount to $325,000. The variable cost of raw materials and labor is $120 for the typical mattress. Sales prices for mattresses average $160. How many units must King Mattress sell to break even?
A) 40.
B) 8,125
C) 2,708.
Q5. Jayco, Inc., sells blue ink for $4.00 a bottle. The ink's variable cost per bottle is $2.00. Ink has fixed cost of $10,000. What is Jayco's breakeven point in units?
A) 5,000.
B) 2,500.
C) 6,000.
[此贴子已经被作者于2009-3-4 10:50:29编辑过] | 
发表于 2009-3-4 10:27
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