The following data pertain to last months operations

45)
The following data pertain to last month's operations:
Selling price $30 per unit
Variable production cost $15 per unit
Fixed production cost $80,000
Variable selling & administrative expenses $3 per unit
Fixed selling & administrative expenses $40,500
What is the break-even point in dollars?
45)
A)
$160,000.
B)
$240,000.
C)
$200,000.
D)
$300,000.
Answer: D
Topic: 04 - 03 Contribution Margin, 04 - 14 Break - Even Computations
LO: 04 - 01 Explain how changes in activity affect contribution margin and operating income., 04 - 05 Compute
the break - even point in unit sales and sales dollars.
CPA Compdtency:: CPA Competency: 3.5.1 Performs sensitivity analysis.
15

46)
The following is last month's contribution format income statement:
Sales (10,000 units) $1,200,000
Less: variable expenses 800,000
Contribution margin 400,000
Less: fixed expenses 240,000
Operating income $160,000
What is the company's break-even sales in units?
46)
CPA Compdtency:: CPA Competency: 3.5.1 Performs sensitivity analysis.
47)
The following is last month's contribution format income statement(Do not round interme
computations):
Sales (20,000 units) $1,800,000
Less: variable expenses 1,200,000
Contribution margin 600,000
Less: fixed expenses 400,000
Operating income $200,000
What is the company's break-even in sales dollars?
47)
48)
Roberts Company sells a single product at a selling price of $55 per unit. Variable costs
are $30.25 per unit, and fixed costs are $113,850. What is Roberts Company's
break-even point?
48)
16

49)
A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed
expenses total $120,000 annually. The company that makes and sells the product has an
income tax rate of 40%. How many units must be sold to yield an after-tax operating
profit of $30,000?
49)
A)
14,167 units.
B)
18,750 units.
C)
21,250 units.
D)
24,375 units.
Answer: C
Topic: 04 - 03 Contribution Margin, 04 - 14 Break - Even Computations, 04 - 16 After - Tax Analysis
LO: 04 - 01 Explain how changes in activity affect contribution margin and operating income., 04 - 05 Compute
the break - even point in unit sales and sales dollars., 04 - 06 Determine the level of sales needed to achieve
a desired target profit.