10. Below is a performance report that compares budgeted and actual profit of Famous Beer

for the month of April:

	Budget	Actual	Difference
Sales	$200,000	$202,000	$2,000
Less:
Cost of ingredients	$162,000	$166,000	$4,000
Salaries	$31,000	$31,200	$200
Controllable Profit	$47,000	$44,800	-$2,200

In evaluating the department in terms of its increase in sales and expenses, what will be

most important to investigate?

Sales

Cost of ingredients

Salaries

All three components have equal importance.

11.	Fatimas Diner has a contribution margin ratio of 17%. If fixed costs are $176,800, how many dollars of revenue must Fatimas generate in order to reach the break-even point?
	A)	$282,880
	B)	$1,040,000
	C)	$1,060,800
	D)	$1,105,000

12.	New Visions, Inc. is looking to achieve a net income of 15 percent of sales. Heres the firms profile: Unit sales price is $10; variable cost per unit is $6; total fixed costs are $40,000. What is the level of sales in units required to achieve a net income of 15 percent of sales?
	A)	12,000 units
	B)	21,000 units
	C)	16,000 units
	D)	20,000 units

13.	At Ziks Apparel, the break-even point is 2,400 units. If fixed costs total $300,000 and variable costs are $25 per unit, what is the selling price per unit?
	A)	$210
	B)	$180
	C)	$5
	D)	$150