Question 6

5, Sample, Inc. determined its unit variable cost increased by 15%, which one of the following will not increase as a direct result? a. b. c. d. Total costs Total variable costs Contribution margin The break-even point 6. The XYZ Co. has the following unit and sales mix data: Total Unit sales price Unit contribution margin Sales mix in dollars (S) Fixed costs Target profit before tax $5.00 0.75 60% $4.00 1.20 40% $105,000 21,600 How many units of BBB product must be sold at the breakeven point? a. 75,000 b. 33,000 c. 30,000 d. 50,000 e. None of the above 7. The cost function for Liao Company is: Total Costs = $600+ 0.375 x Revenue. If Liao expects after-tax income of $900 and the tax rate is 40%, what is the firm's margin of safety? a. $4,560 c. $3,360 b. $960 d. $2,400