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single product. Data concerning that product appear Corporation produces and sel

ID: 2412968 • Letter: S

Question

single product. Data concerning that product appear Corporation produces and sells a Blane below: $230.00 Variable expense per unit $73.60 ixed expense per month $542,708 Selling price per unit The break-even in monthly units is closest to: A. 4,401 B. 2,360 ?. 3,470 D. 7,374 27. Data concerning Wang Corporation's single product appear below: Selling price per unit $150.00 Variable expense per unit $49.50 Fixed expense per month $138,69 The break-even in monthly dollar sales is closest to: A. $207,000 B. $255,321 C. $138,690 D. $420,273 28. Wyy Inc. produces and sells a single product. The selling price of the product is $170.00 per unit and its variable cost is $62.90 per unit. The fixed expense is $356,643 per month. The break-even in monthly dollar sales is closest to: A. $963,900 B. $628,881 C. $566,100 D. $356,643

Explanation / Answer

Q26. Answer is C. 3470 units Explanation: Selling price 230 Less: varaiable cost 73.6 Contribution margin per unit 156.4 Fixed cost: $ 542708 Break even units: Fixed cost / Contirbution per unit 542708 /156.40 =3470 units Q27. Answer is A. $ 207000 Explanation; Selling price 150 Less: varaiable cost 49.5 Contribution margin per unit 100.5 Fixed cost: $ 138690 CM ratio: Contribution margin per unit/ Selling price 100.50 /150 *100 = 67% Break even in $: Fixed cost/ Cm ratio 138690 /67% = $207000 Q28. Answer is C. $ 566100 Explanation; Selling price 170 Less: varaiable cost 62.9 Contribution margin per unit 107.1 Fixed cost: $ 356643 CM ratio: Contribution margin per unit/ Selling price 107.1/170 *100 = 63% Break even in Sales: Fixed cost / Cm ratio 356643 /63% = $ 566100