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1.A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax...

1.A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?
a. 6,500
b. 6,000
c. 500
d. 5,000
e. 5,500
2.Cost-volume-profit analysis is a precise tool for perfectly predicting the profit consequences of cost changes, price changes, and volume changes
True/False
3.The contribution margin ratio is the percent by which the margin of safety exceeds the break-even point
True/False
4.A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Total June sales are anticipated to be:
a. 63,000
b. 67,500
c. 61,250
d. 74,250
e. 60,000

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