Exam Review
Ch. 2 Practice Problems
Simpson Company produces dolls. Each doll sells for $20.00. Variable costs per unit are $14.00.
10.
If total fixed costs are $435,000, then the break-even point is
a.
21,750 dolls.
b.
31,071 dolls.
c.
51,176 dolls.
d.
72,500 dolls.
11.
If total fixed costs are $435,000, then the break-even volume in dollars is
a.
$1,450,000.
b.
$1,023,529.
c.
$621,429.
d.
$435,000.
12.
If the break-even volume in dollars is $1,446,000, then the total fixed costs for the period must be:
a.
$433,800.
b.
$361,500.
c.
$516,425.
d.
$1,446,000.
Carol’s Fresh Fruit Stand had the following income statement for last year:
Sales
$200,000
- Variable Costs
120,000
- Fixed Costs
70,000
Income
$
10,000
13.
What must Carol’s sales (in dollars) be in order for her to break even?
a.
$116,667
b.
$200,000
c.
$133,333
d.
$175,000
e.
$
28,000
14.
What must Carol’s sales (in dollars) be in order for her to earn a profit of $30,000?
a.
$166,667
b.
$250,000
c.
$275,000
d.
$
75,000
e.
$
18,000