Refer to moonbeam corporation how many total units

51. Refer to Moonbeam Corporation. How many total units would the company have needed to sell to
break even?
a. 3,750
b. 750
c. 3,600
d. 1,800
ANS: A
Let B = 1.5A
3A + 2(1.5A) - $9,000 = $0
6A - $9,000 = $0
A = 1,500
B = 2,250
Total units = 3,750
PTS: 1 DIF: Moderate OBJ: 9-4 NAT: AACSB: Analytical Skills
LOC: AICPA Functional Competencies: Measurement, Reporting
52. Refer to Moonbeam Corporation. If the company would have sold a total of 6,000 units, consistent
with CVP assumptions how many of those units would you expect to be Product B?
PTS: 1 DIF: Moderate OBJ: 9-4 NAT: AACSB: Analytical Skills
LOC: AICPA Functional Competencies: Measurement, Reporting

Chapter 9
16
53. Refer to Moonbeam Corporation. How many units would the company have needed to sell to produce
a profit of $12,000?
PTS: 1 DIF: Moderate OBJ: 9-4 NAT: AACSB: Analytical Skills
LOC: AICPA Functional Competencies: Measurement, Reporting
John Anderson Company
Below is an income statement for John Anderson Company:
Sales
$300,000
Variable costs (150,000 )
Contribution margin $150,000
Fixed costs
(100,000 )
Profit before taxes $ 50,000
54. Refer to John Anderson Company. What was the company's margin of safety?
PTS: 1 DIF: Moderate OBJ: 9-5 NAT: AACSB: Analytical Skills
LOC: AICPA Functional Competencies: Measurement, Reporting

Chapter 9
17
55. Refer to John Anderson Company. If the unit sales price for John Anderson’s sole product was $10,
how many units would it have needed to sell to produce a profit of $40,000?
a. 27,500
b. 29,000
c. 28,000
d. can't be determined from the information given
ANS: C
Contribution Margin at $40,000 profit: $(40,000 + 100,000) = $140,000
Contribution Margin Ratio: 0.50
$140,000 / .50 = $280,000
$280,000 / $10 = 28,000 units
PTS: 1 DIF: Moderate OBJ: 9-3 NAT: AACSB: Analytical Skills
LOC: AICPA Functional Competencies: Measurement, Reporting
56. A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the
sales price at $40 per unit, the CM ratio at 60 percent, and profit at $500,000. What is the firm
budgeting for fixed costs in the coming period?
PTS: 1 DIF: Moderate OBJ: 9-3 NAT: AACSB: Analytical Skills
LOC: AICPA Functional Competencies: Measurement, Reporting