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87) Wimpy Inc. produces and sells a single product. The selling price of the product is $150.00
per unit and its variable cost is $58.50 per unit. The fixed expense is $366,915 per month.
The break-even in monthly dollar sales is closest to:
A) $601,500
B) $366,915
C) $636,408
D) $940,808
88) Given the following data:
Selling price per unit
$
2.00
Variable production cost per unit
$
0.30
Fixed production cost
$
3,000
Sales commission per unit
$
0.20
Fixed selling expenses
$
1,500
The break-even point in dollars is:
A) $6,000
B) $4,500
C) $2,647
D) $4,000
89) Hevesy Inc. produces and sells a single product. The selling price of the product is $200.00
per unit and its variable cost is $80.00 per unit. The fixed expense is $300,000 per month. The
break-even in monthly unit sales is closest to:
A) 2,500
B) 1,500
C) 3,750
D) 2,583
90) Singapore Candy Cane Corporation is a single product firm with the following cost structure
for next year:
Selling price per unit
$
1.20
Variable expenses per unit
$
0.72
Total fixed expenses for the year
$
64,800
What is the company's break-even point next year in sales dollars?
A) $90,000
B) $108,000
C) $135,000
D) $162,000
91) Bear Publishing sells a nature guide. The following information was reported for a typical
month:
Total
Per Unit
Sales
$
17,600
$
16.00
Variable expenses
9,680
Contribution margin
7,920
Fixed expenses
3,600
Net operating income
$
4,320
What is Bear's current break-even point in unit and dollars?
A) 1,100 units and $17,600
B) 1,100 units and $8,000
C) 8,000 units and $500
D) 500 units and $8,000
92) Mason Corporation's selling price was $20 per unit. Fixed expenses totaled $54,000, variable
expenses were $14 per unit, and the company reported a profit of $9,000 for the year. The break-
even point for Mason Corporation is:
A) 10,500 units
B) 4,500 units
C) 8,500 units
D) 9,000 units
93) Derst Inc. sells a particular textbook for $140. Variable expenses are $25 per book. At the
current volume of 6,000 books sold per year the company is just breaking even. Given these
data, the annual fixed expenses associated with the textbook total:
A) $400,000
B) $690,000
C) $840,000
D) $150,000
94) Data concerning Buchenau Corporation's single product appear below:
Selling price per unit
$
150.00
Variable expense per unit
$
34.50
Fixed expense per month
$
466,620
The break-even in monthly unit sales is closest to:
A) 3,111
B) 6,892
C) 4,040
D) 13,525
95) Sufra Corporation is planning to sell 100,000 units for $8.00 per unit and will break even at
this level of sales. Fixed expenses will be $300,000. What are the company's variable expenses
per unit?
A) $5.00
B) $4.00
C) $3.00
D) $4.50
96) Mio Canoe Livery rents canoes and transports canoes and customers to and from their canoe
trip on a local river. The trip is priced at $20 per person and has a CM ratio of 30%. Mio's fixed
expenses are $84,000. Last year, sales were $400,000 and profit was $36,000. How many units
need to be sold to break-even, and how many need to be sold to earn a profit of $42,000?
A) 1,800 and 2,100
B) 6,000 and 8,143
C) 14,000 and 21,000
D) 4,200 and 6,300
97) A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per
month and the product has a contribution margin ratio of 40%. If the company's actual sales are
$224,000, its margin of safety is:
A) $32,000
B) $96,000
C) $128,000
D) $192,000
98) The following data are available for the Phelps Corporation for a recent month:
Product A
Product B
Product C
Total
Sales
$
150,000
$
130,000
$
90,000
$
370,000
Variable expenses
91,000
104,000
27,000
222,000
Contribution margin
$
59,000
$
26,000
$
63,000
148,000
Fixed expenses
55,000
Net operating income
$
93,000
The break-even sales for the month for the company is closest to:
A) $91,667
B) $203,000
C) $148,000
D) $137,500
99) Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit.
Fixed expenses total $225,000 per year, and the company must sell 5,000 units to break even. If
the company has a target profit of $67,500, sales in units must be:
A) 6,000 units
B) 5,750 units
C) 7,925 units
D) 6,500 units
100) Corporation X sold 25,000 units of product last year. The contribution margin per unit was
$2, and fixed expenses totaled $40,000 for the year. This year fixed expenses are expected to
increase to $45,000, but the contribution margin per unit will remain unchanged at $2. How
many units must be sold this year to earn the same net operating income as was earned last year?
A) 22,500
B) 27,500
C) 35,000
D) 2,500
101) Data concerning Bedwell Enterprises Corporation's single product appear below:
Selling price per unit
$
160.00
Variable expenses per unit
$
65.60
Fixed expense per month
$
387,040
The unit sales to attain the company's monthly target profit of $17,000 is closest to:
A) 6,159
B) 4,280
C) 2,525
D) 4,321
102) The contribution margin ratio of Mountain Corporation's only product is 52%. The
company's monthly fixed expense is $296,400 and the company's monthly target profit is $7,000.
The dollar sales to attain that target profit is closest to:
A) $570,000
B) $157,768
C) $583,462
D) $154,128
103) Hettrick International Corporation's only product sells for $120.00 per unit and its variable
expense is $52.80. The company's monthly fixed expense is $396,480 per month. The unit sales
to attain the company's monthly target profit of $13,000 is closest to:
A) 7,755
B) 6,093
C) 5,753
D) 3,412
104) Caneer Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
240.00
Variable expenses per unit
$
81.60
Fixed expense per month
$
997,920
The unit sales to attain the company's monthly target profit of $44,000 is closest to:
A) 7,896
B) 12,769
C) 6,578
D) 4,341
105) Product Y sells for $15 per unit, and has variable expenses of $9 per unit. Fixed expenses
total $300,000 per year. How many units of Product Y must be sold each year to yield an annual
profit of $90,000?
A) 50,000 units
B) 65,000 units
C) 15,000 units
D) 43,333 units
106) Logsdon Corporation produces and sells a single product whose contribution margin ratio is
63%. The company's monthly fixed expense is $720,720 and the company's monthly target profit
is $28,000. The dollar sales to attain that target profit is closest to:
A) $471,694
B) $454,054
C) $1,188,444
D) $1,144,000
