# Quiz+4+fall+2010+w+answers+monday - A Between 9,000 and...

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SM 121 Quiz November 15, 2010 Name: Section:  ____ 1.  Ben’s  Bigmouth Corporation sells his products for \$25 per unit with a variable cost of  \$6.50 per unit. Fixed expenses are \$150,000. What is the breakeven point in units? A) Between 10,000 and 10,500 units B) Between 20,000 and 25,000 units C) Between 5,000 and 6,000 units D)  Between 8,000 and 9,000 units 2.  If Big Boss Bobo (management) raises its sale price 20% and variable costs per unit  do not  change, what is the breakeven point in units? A) Between 16,000 and 17,000 units B)  Between 6,000 and 7,000 units C) Between 7,000 and 8,000 units D) Between 8,000 and 9,000 units 3.   If fixed costs were to increase 10% next year how many units will be needed to  breakeven at the new, higher sale price?

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Unformatted text preview: A) Between 9,000 and 10,000 units B) Between 7,000 and 8,000 units C) Between 4,000 and 5,000 units D) Between 16,000 and 17,000 units SM 121 Quiz November 15, 2010 Name: Section: ____ 4. If fixed costs decrease 10%, contribution margin at the old sale price would: A) increase 10% B) decrease 10% C) impossible to determine with the given data D) remain the same Bonus: Of the items listed below, the one that would be most helpful in the comparison of different-sized companies is: A) performing horizontal analysis B) looking at the amount of income earned by each company C) comparing working capital balances D) preparing common-size financial statements SM 121 Quiz November 15, 2010 Name: Section: ____...
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## This note was uploaded on 01/09/2011 for the course SMG 121 taught by Professor Arnold during the Spring '08 term at BU.

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Quiz+4+fall+2010+w+answers+monday - A Between 9,000 and...

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