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# 8. If fixed costs are \$500,000 and the unit contribution margin

### Customer Question

8. If fixed costs are \$500,000 and the unit contribution margin is \$12, what amount of units must be sold in order to realize an operating income of \$100,000? (Points: 5)
5,000
41,667
50,000
58,333

9. If fixed costs are \$250,000, the unit selling price is \$105, and the unit variable costs are \$65, what is the break-even sales (units)?
(Points: 5)
3,846 units
2,381 units

10,000 units

6,250 units

10. Per unit, fixed costs will (Points: 5)
Increase when production increases
Decrease when production decreases
Decrease when production increases
Stay the same

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
Submitted: 6 years ago.
Category: Homework
Expert:  Neo replied 6 years ago.
Good day!

8.) 50,000

9.) 6,250 units

10.) Decrease when production increases

11.) 16,000 units

12.) 68,000 units
Customer: replied 6 years ago.

Hello thank you very much for the help, i am currently taking an online test. I have 20min left to answer the following questions. Can you please help me?

13. Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service, such as United Postal Service?

Number of trucks employed
Number of miles driven
Number of trucks in service
Number of packages delivered

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

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:

"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

contribution margin
margin of safety

price factor
operating leverage

17. Explain the difference between fixed and variable costs per unit AND in total. Provide an example to support your explanation.

18. Calculate (a) the contribution margin and (b) the contribution margin ratio based on the following data: (Be sure to label your answers appropriately)

Sales 1,000,000

Variable costs 600,000

Fixed costs 200,000

Expert:  Neo replied 6 years ago.