9) The number of hams that must be sold to achieve $75,000 of operating income is:
10) At the breakeven point of 2,000 units, variable costs total $4,000 and fixed costs total $6,000.The 2,001st unit sold will contribute ________ to profits.
11) If sales increase by $40,000, operating income will increase by: A) $10,000 B) $20,000 C) $30,000 D) None of these answers is correct. Answer: Explanation: C) Price = $220,000/11,000 = $20.00Sales in hams = $40,000/$20.00 = 2,000 hamsOperating Income increase = 2,000 hams x $15.00 per = $30,000
12) The margin of safety is the difference between:
BAnswer the following questions using the information below:Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 200 procedures this month.