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A product sells for $200 per unit, and its variable costs per unit are $130.

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1.A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?;a. 6,500;b. 6,000;c. 500;d. 5,000;e. 5,500;2.Cost-volume-profit analysis is a precise tool for perfectly predicting the profit consequences of cost changes, price changes, and volume changes;True/False;3.The contribution margin ratio is the percent by which the margin of safety exceeds the break-even point;True/False;4.A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Total June sales are anticipated to be;a. 63,000;b. 67,500;c. 61,250;d. 74,250;e. 60,000

 

Paper#26504 | Written in 18-Jul-2015

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