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Haseeb, Management Accountant
Category: Finance
Satisfied Customers: 47
Experience:  CMA
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# 10. If fixed costs are \$750,000 and variable costs are 70%

### Customer Question

10. If fixed costs are \$750,000 and variable costs are 70% of sales, what is the break-even point (dollars)?
(Points: 5)
\$1,071,429

\$525,000

\$2,500,000

\$1,275,000

11. If fixed costs are \$1,400,000, the unit selling price is \$220, and the unit variable costs are \$120, what is the amount of sales required to realize an operating income of \$200,000?
(Points: 5)
14,000 units

12,000 units
16,000 units
13,333 units

12. If fixed costs are \$300,000, the unit selling price is \$25, and the unit variable costs are \$20, what is the break-even sales (units) if fixed costs are increased by \$40,000?
(Points: 5)
52,000 units
60,000 units

68,000 units
62,000 units

13. Which of the following conditions would cause the break-even point to decrease?
(Points: 5)
Total fixed costs increase
Unit selling price decreases
Unit variable cost decreases
Unit variable cost increases

14. The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents:
(Points: 5)
the maximum possible operating loss

the maximum possible operating income

the total fixed costs
the break-even point

15. With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. Such an analysis is called: (Points: 5)
"What if" or sensitivity analysis
vary the data analysis

computer aided analysis

data gathering

16. The difference between the current sales revenue and the sales at the break-even point is called the:
(Points: 5)
contribution margin
margin of safety

price factor
operating leverage
Submitted: 5 years ago.
Category: Finance
Expert:  Haseeb replied 5 years ago.

http://www.mediafire.com/?k4s807nh7kkg9ha

Best regards
Customer: replied 5 years ago.

there are problems with that site can you just write the answers over here?

?

Expert:  Haseeb replied 5 years ago.
My pleasure.

10. If fixed costs are \$750,000 and variable costs are 70% of sales, what is the break-even point (dollars)?
(Points: 5)

\$2,500,000

11. If fixed costs are \$1,400,000, the unit selling price is \$220, and the unit variable costs are \$120, what is the amount of sales required to realize an operating income of \$200,000?
(Points: 5)

16,000 units

12. If fixed costs are \$300,000, the unit selling price is \$25, and the unit variable costs are \$20, what is the break-even sales (units) if fixed costs are increased by \$40,000?
(Points: 5)

68,000 units

13. Which of the following conditions would cause the break-even point to decrease?
(Points: 5)

Unit variable cost decreases

14. The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents:
(Points: 5)

the break-even point

15. With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. Such an analysis is called: (Points: 5)

"What if" or sensitivity analysis

16. The difference between the current sales revenue and the sales at the break-even point is called the:
(Points: 5)

margin of safety

Best regards,