21 May WHAT IS THE BREAK-EVEN POINT IN DOLLAR SALES?
Homework 7A
Question 1 1
/ 1 point
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $34.89. The variable cost per
unit is $22.35, Poseidon Swim has average fixed costs per year of $47,916.
What is the break-even point in units for Poseidon Swim?
Round the answer to the whole number.
Question 2 1
/ 1 point
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $40.00. The variable cost per
unit is $18.59, Poseidon Swim has average fixed costs per year of $42,321.
What is the break-even point in dollar sales?
Question 3 1
/ 1 point
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $64.34. The variable cost per
unit is $27.98, Poseidon Swim has average fixed costs per year of $23,956.
What would be the operating profit or loss associated with
the production and sale of 422 swim trunks?
Question 4 1
/ 1 point
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $68.78. The variable cost per
unit is $25.73, Poseidon Swim has average fixed costs per year of $9,256.
Determine the degree of operating leverage for the level of
production and sales 427 swim trunks.
Question 5 1
/ 1 point
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $63.58. The variable cost per
unit is $24.83, Poseidon Swim has average fixed costs per year of $8,339.
Assume that current
level of sales is 416 units. What will be the resulting percentage change in
EBIT if they expect units sold to changes by 3.7 percent? (You should calculate
the degree of operating leverage first).
(Write the percentage sign in the “units” box).
Round the answer to two decimal places.
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