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# Quiz+4+fall+2010+w+answers+wednesday - breakeven at the new...

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SM 121 Quiz November 17, 2010 Name: Section:  ____ 1.  Ben’s  Bigmouth Corporation sells his products for \$28 per unit with a variable cost of  \$9.50 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 decrease 10% next year how many units will be needed to

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Unformatted text preview: breakeven at the new, higher sale price? A) Between 9,000 and 10,000 units B) Between 5,500 and 7,500 units C) Between 4,000 and 5,000 units D) Between 16,000 and 17,000 units SM 121 Quiz November 17, 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: White Motors produces a single car model selling for \$80,000 per car. Variable costs are \$35,000 per unit and total fixed costs are \$12,000,000. What is the Contribution Margin ratio? A) 210% B) 98% C) 84% D) 138% E) 56 SM 121 Quiz November 17, 2010 Name: Section: ____...
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Quiz+4+fall+2010+w+answers+wednesday - breakeven at the new...

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