Question 29 (5 points)

Eagle Company makes figurines and has $5,000 in fixed costs. Their unit sales price is $30 and their unit variable costs are $14. How many figurines do they need to sell to break even? (The company cannot sell partial figurines, only whole units.)

Question 29 options:

	312
	358
	167
	313

Question 30 (5 points)

Ikea Company sells folding bookcases and has the following information:

Unit sales price: $25

Fixed cost per month: $5,000

Variable costs per unit: $10

How many bookcases will it need to sell next month to make $10,000 in profit?

Question 30 options:

	600
	667
	334
	1,000

Question 31 (5 points)

Mobility Partners makes wheelchairs and other assistive devices. For years it has made the wheel locks in house for its wheelchairs. A local bicycle manufacturing firm, Wheels and More, offered to sell these wheel locks to Mobility for $100/unit. If Mobility makes the wheel locks, its cost per wheel lock is as follows (based on annual production of 2,000 units):

Direct materials $40

Direct labor $32

Variable overhead $22

Fixed overhead $25

Total $119

Assuming fixed overhead is unavoidable, what is the relevant total cost of making the wheel locks internally?

Question 31 options:

	$200,000
	$238,000
	$250,000
	$188,000

Question 32 (5 points)

String Company makes 4 different types of ladders. Its "Model C" ladder has a net operating loss of ($3,500). Eliminating Model C would eliminate the $2,750 in direct fixed costs but none of the $6,500 in common fixed costs assigned to it. Contribution margin is $5,750 and segment margin is $3,000.

If String Company eliminated Model C, how much would total net operating income increase or decrease?

Question 32 options:

	$3,500 increase
	$3,000 increase
	$3,000 decrease
	$3,500 decrease