140) The ratio (proportion) of the sales volumes for the various products sold by a company is called
the:
A) Current product mix.
B) Relevant mix.
C) Production ratio.
D) Inventory cost ratio.
E) Sales mix.
141) Mott Company’s sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each
product are $20, $30, and $40, respectively. Variable costs per unit are $12, $18, and $24,
respectively. Fixed costs are $320,000. What is the break-even point in composite units?
A) 4,000 composite units.
B) 2,666 composite units.
C) 1,600 composite units.
D) 1,111 composite units.
E) 5,000 composite units.
3 units of A at [$20 – $12] contribution margin per unit
2 units of B at [$30 – $18] contribution margin per unit
142) Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and
cost data are:
M
N
O
Unit sales price
$ 7
$ 4
$ 6
Unit variable costs
3
2
3
Total fixed costs are $340,000. The selling price per composite unit for the current sales mix
(rounded to the nearest cent) is:
A) $25.00. B) $37.00. C) $17.00. D) $ 5.67. E) $20.00.
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143) Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and
cost data are:
M
N
O
Unit sales price
$ 7
$ 4
$ 6
Unit variable costs
3
2
3
Total fixed costs are $340,000. The contribution margin per composite unit for the current sales mix
(round to the nearest cent) is:
A) $ 5.67. B) $20.00. C) $25.00. D) $37.00. E) $17.00.
144) Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and
cost data are:
M
N
O
Unit sales price
$ 7
$ 4
$ 6
Unit variable costs
3
2
3
Total fixed costs are $340,000. The break-even point in composite units for the current sales mix
(round to the nearest unit) is:
A) 102,000 B) 20,000 C) 34,000 D) 17,000 E) 51,000
145) Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and
cost data are:
M
N
O
Unit sales price
$ 7
$ 4
$ 6
Unit variable costs
3
2
3
Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is
(round to the nearest thousand):
A) $629,000. B) $289,000. C) $740,000. D) $ 20,000. E) $400,000.
146) Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells
for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit
contribution margin of $450; and the Recreational model sells for $1,000 and has a unit
contribution margin of $500. The company’s sales mix includes: 5 Youth models; 9 Adult models;
and 6 Recreational models. If the firm’s annual fixed costs total $6,500,000, calculate the firm’s
selling price per composite unit.
A) $13,200. B) $7,575. C) $15,150. D) $1,255. E) $1,950.
147) Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells
for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit
contribution margin of $450; and the Recreational model sells for $1,000 and has a unit
contribution margin of $500. The company’s sales mix includes: 5 Youth models; 9 Adult models;
and 6 Recreational models. If the firm’s annual fixed costs total $6,500,000, calculate the firm’s
contribution margin per composite unit.
A) $1,055. B) $1,500. C) $1,950. D) $1,255. E) $7,575.
148) Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells
for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit
contribution margin of $450; and the Recreational model sells for $1,000 and has a unit
contribution margin of $500. The company’s sales mix includes: 5 Youth models; 9 Adult models;
and 6 Recreational models. If the firm’s annual fixed costs total $6,500,000, calculate the firm’s
break-even point in composite units (rounded to the nearest whole unit).
A) 7,575 composite units.
B) 429 composite units.
C) 15,150 composite units.
D) 858 composite units.
E) 6,161 composite units.
