6.

If total fixed costs decrease while the selling price per unit and variable costs per unit remain constant, which of the following statements is true?

Select one:

a. Contribution margin increases.

b. Breakeven point in units increases.

c. Contribution margin decreases.

d. Breakeven point in units decreases.

9.

I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 15,000 gallons last year. For every five gallons of ice cream sold, one pound is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road. Fixed costs for I Scream For Ice Cream are $27,000 and additional information follows: The breakeven sales volume in gallons for I Scream For Ice Cream is

Select one:

a. 5,400.

b. 7,500.

21.

Artwell Company wants to have an ending inventory of 7,000 units. Artwell Company has beginning inventory of 8,000 units and expects to sell 33,000 units. How many units should Artwell Company produce?

Select one:

a. 40,000

b. 48,000

c. 32,000

d. 34,000

24.

Peabody Enterprises prepared the following sales budget:

Month	Budgeted Sales
March	$6,000
April	$13,000
May	$12,000
June	$14,000

The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold. What is the budgeted cost of goods sold for May?

Select one:

a. $2,400

b. $4,800

c. $7,200

d. $3,600

25.

Peabody Enterprises prepared the following sales budget:

Month	Budgeted Sales
March	$6,000
April	$13,000
May	$12,000
June	$14,000

The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold. What are the total purchases budgeted for April?

elect one:

a. $7,440

b. $7,680

c. $7,920

d. $9,360