1. Grey, Inc. sells a single product for $22. Variable costs are $8 per unit and fixed...

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1. Grey, Inc. sells a single product for $22. Variable costs are $8 per unit and fixed costs total $147,000 at a volume level of 4,500 units. Assuming that fixed costs do not change, Green's break-even sales would be:
$511,000
$231,000
$331,000
$191,000
An amount other than those above
2. A recent income statement of Suni Corporation reported the following data:
Sales revenue $10,318,000
Variable costs 5,918,000
Fixed costs 2,880,000
If these data are based on the sale of 22,000 units, the break-even point would be:
35,233 units
14,400 units
An amount other than those above
9,400 units
13,528 units
3. A recent income statement of Black Corporation reported the following data:
Sales revenue $ 8,505,000
Variable costs 5,985,000
Fixed costs 3,040,000
If these data are based on the sale of 21,000 units, the contribution margin per unit would be:
$120
$10
$330
An amount other than those above
$260
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Finite Mathematics and Its Applications

ISBN: 978-0134768632

12th edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

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