TB MC Qu. 3-36 (Static) Consider the following cost-volume-profit... Consider the following cost-volume-profit graph: Based on the information in the graph, the break-even point in sales dollars is approximately equal to: Multiple Choice $50,000. $30,000. $60,000. $20,000. Sheddon industries produces two products. The products' identfied costs are as follows: The company's overhead costs of $56,000 are allocated bosed on direct labor cost. Assume 6,000 units of product A and 7,000 units of Product B are produced. What is the cost per unit for product B? (Do not round intermediate calculations.) Muliple Choice 51134 513.34 512.69 None of the anwwers are correct. The Tangier Company is considering eliminating the following product line: What amount of cost is avoidable if Tangier outsources production of this product? Multiple Choice $60,000 $50,000 $90,000 Mountain Gear has been using the same machines to make its name-brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $100,000. The old machines presently have a book value of $60,000 and a market value of $6,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $50,000 and have operating expenses of $9,000 a year. The new machines are expected to have a flve-year useful life and no salvage value. The operating expenses associated with the old machines are $15,000 a year. The new machines are expected to increase quality, Justifying a price increase and thereby increasing sales revenue by $5,000 a year, Select the true statement. Multiple Cholce. The company will be $11.000 better off over the five-year period if it replaces the old equipinent. The company wili be $20.000 better off over the flve year period if at keeps the old equpment. The company will be $12.000 better off over the five-year period it it replaces the old equipment. The company will be $6,000 better off over the fiveyear period it it replaces the oid equipment