29 Jun Question 18. Sanderson sells a
Question
18. Sanderson sells a single product for $50 that has a variable cost of $30. Fixed costs
amount to $5 per unit when anticipated sales targets are met. If the company sells one
unit in excess of its break-even volume, profit will be:
A. $15.
B. $20.
C. $50.
D. an amount that cannot be derived based on the information presented.
E. an amount other than those in choices “A,” “B,” and “C”, but one that can be derived
based on the information presented.
19. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable
costs of $300,000, and fixed costs of $260,000. The company’s contribution margin per
unit is:
A. $22.
B. $28.
C. $35.
D. $37.
E. an amount other than those above.
20. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable
costs of $300,000, and fixed costs of $260,000. The company’s break-even point in units
is:
A. 7,027 (rounded).
B. 8,667 (rounded).
C. 9,286 (rounded).
D. 7,429 (rounded).
E. an amount other than those above.
21. A recent income statement of Black Corporation reported the following data:
If these data are based on the sale of 20,000 units, the contribution margin per unit would
be:
A. $40.
B. $150.
C. $290.
D. $360.
E. an amount other than those above.
22. A recent income statement of Black Corporation reported the following data:
If these data are based on the sale of 20,000 units, the break-even point would be:
A. 9,565 units (rounded).
B. 11,000 units (rounded).
C. 7,586 units (rounded).
D. 14,667 units (rounded).
E. an amount other than those above.
23. A recent income statement of Suni Corporation reported the following data:
If these data are based on the sale of 20,000 units, the break-even point would be:
A. 7,500 units.
B. 11,628 units.
C. 12,500 units.
D. 33,333 units.
E. an amount other than those above.
24. A recent income statement of Yang Corporation reported the following data:
If these data are based on the sale of 5,000 units, the break-even sales would be:
A. $2,000,000.
B. $2,206,000.
C. $2,500,000.
D. $10,000,000.
E. an amount other than those above.
25. Lawson, Inc. sells a single product for $12. Variable costs are $8 per unit and fixed
costs total $360,000 at a volume level of 60,000 units. Assuming that fixed costs do not
change, Lawson’s break-even point would be:
A. 30,000 units.
B. 45,000 units.
C. 90,000 units.
D. negative because the company loses $2 on every unit sold.
E. a positive amount other than those given above.
26. Grey, Inc. sells a single product for $20. Variable costs are $8 per unit and fixed costs
total $120,000 at a volume level of 5,000 units. Assuming that fixed costs do not change,
Green’s break-even sales would be:
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