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In: Accounting

QUESTION 12 Boomerang company sells a product at $100 per unit that has unit variable costs...

QUESTION 12

  1. Boomerang company sells a product at $100 per unit that has unit variable costs of $30. The company's break-even sales point in sales dollars is $150,000. How much profit will the company make if it sells 4,000 units?

    A.

    $70,000
    B.

    $120,000
    C.

    $175,000
    D.

    $215,000

8.71 points   

QUESTION 13

  1. During its first year of operations, Buzz Lightyear Company paid $35,000 for direct materials and $70,000 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $25,000. General, selling, and administrative expenses were $30,000. The average cost to produce one unit was $3.00. How many units were produced during the period?

    A.

    38,455 units
    B.

    56,000 units
    C.

    40,000 units
    D.

    43,333 units

8.71 points   

QUESTION 14

  1. Bootfall Company currently produces and sells 4,000 units of a product that has a contribution margin of $5 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $20,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $15,000. After the new investment is made, how many units must be sold to break even?

    A.

    4,375 units
    B.

    7,000 units
    C.

    2,917 units
    D.

    4,000 units

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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