Question

In: Accounting

1.) Our company has reviewed the utilities bills for our company. We have determined that the...

1.)

Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,600 and $3,200 for the months of January and September. If we produced 1,200 and 600 units in these months, what was the fixed cost associated with the utilities bill?

Group of answer choices

$512.00

$560.00

$620.00

$800.00

2.)

Which of the following is true?

Group of answer choices

An increase in sales price per unit decreases the contribution margin per unit.

An increase in sales price per unit increases the number of units required to break even.

When the sales price per unit decreases, the breakeven point increases.

When the sales price per unit increases, the contribution margin per unit remains the same.

3.)

Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000. What would be the breakeven point in units if the sales price per unit decreased by $10?

Group of answer choices

500

667

1,000

1,200

4.)

Our company sells its product for $80 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 450, and we expect to sell 400 units. What is the margin of safety in dollars?

Group of answer choices

($2,000)

$4,000

($4,000)

$2,000

Solutions

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