45)The following data pertain to last month's operations:Selling price$30 per unitVariable production cost$15 per unitFixed production cost$80,000Variable selling & administrative expenses$3 per unitFixed selling & administrative expenses$40,500What is the break-even point in dollars?45) A)$160,000.B)$240,000.C)$200,000.D)$300,000.Answer: DTopic:04-03 Contribution Margin, 04-14 Break-Even ComputationsLO:04-01 Explain how changes in activity affect contribution margin and operating income., 04-05 Computethe 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)$1,200,000Less: variable expenses800,000Contribution margin400,000Less: fixed expenses240,000Operating income$160,000What 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 intermecomputations):Sales (20,000 units)$1,800,000Less: variable expenses1,200,000Contribution margin600,000Less: fixed expenses400,000Operating income$200,000What 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 costsare $30.25 per unit, and fixed costs are $113,850. What is Roberts Company'sbreak-even point? 48) 16
49)A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixedexpenses total $120,000 annually. The company that makes and sells the product has anincome tax rate of 40%. How many units must be sold to yield an after-tax operatingprofit of $30,000? 49) A)14,167 units.B)18,750 units.C)21,250 units.D)24,375 units.Answer: CTopic:04-03 Contribution Margin, 04-14 Break-Even Computations, 04-16 After-Tax AnalysisLO:04-01 Explain how changes in activity affect contribution margin and operating income., 04-05 Computethe break-even point in unit sales and sales dollars., 04-06 Determine the level of sales needed to achievea desired target profit.
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