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A)
B)
C)
D)
Contribution
margin per
unit
No change
Increase
Increase
Increase
Contributio
n
margin ratio
No change
Increase
No change
Decrease
11. Mason Enterprises has prepared the following budget for the month of July:
Product A...............
Product B...............
Product C...............
Selling
price per
unit
$10.00
$15.00
$18.00
Variable
cost per
unit
$4.00
$8.00
$9.00
Unit
sales
15,000
20,000
5,000
Assuming that total fixed expenses will be $150,000 and the sales mix remains
constant, the break-even point would be closest to:
A) $276,008
B) $235,292
C) $294,545
D) $141,278
12. Mark Corporation produces two models of calculators. The Business model sells for
$60, and the Math model sells for $40. The variable expenses are given below:
Busines
s
Variable production costs per unit...................................
Variable selling and administrative expenses per unit.....
Model
$15
$9
Math
Mode
l
$16
$6
The fixed expenses are $75,000 per month. The expected monthly sales of each
model are: Business, 1,000 units; Math, 500 units.
The break-even point for the expected sales mix is (round to nearest whole unit):
A) 833 of each
B) 1,667 Business and 833 Math
C) 1,667 of each
D) 833 Business and 1,667 Math
13. Assume the following cost information for Fernandez Company:
Selling price
Variable costs
Total fixed costs
Tax rate
What minimum volume of sales dollars is required to earn an after-tax net income of
$30,000?
A. $465,000
B. $330,000
C. $390,000
D. $165,000