Broadway Company produces and sells two models of calculators. The following mon
ID: 2508439 • Letter: B
Question
Broadway Company produces and sells two models of calculators. The following monthly data are provided:
Total monthly fixed costs are expected to be $15,000. What is the break-even point in sales dollars at the expected sales mix? (Do not round your intermediate calculations.)
$19,231
$43,478
$68,182
$64,286
When drawing a cost-volume-profit graph, how are the axes labeled?
The horizontal axis would be labeled with dollars (of cost or revenue), while the vertical axis would be labeled with number of units (volume or activity).
The horizontal axis would be labeled with dollars (of total fixed costs), while the vertical axis would be labeled with dollars (of total variable costs).
The horizontal axis would be labeled with number of units (volume or activity), while the vertical axis would be labeled with dollars (of cost or revenue).
None of these answers is correct.
When performing sensitivity analysis, which of the following is an example of a variable that management may consider changing to answer "what if" questions?
Variable cost per unit
Sales price per unit
Fixed cost per unit
Both Variable cost per unit and Sales price per unit are correct.
Standard Premium Unit selling price $ 100 $ 150 Unit variable manufacturing cost $ 60 $ 90 Unit variable selling and administrative cost $ 15 $ 30 Number of units produced and sold 3,000 1,000Explanation / Answer
Break Even Point :- Fixed Cost* Average Sales per unit/Average Contribution per unit
= 15000*183.33/38.33
$71744.06
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