Bergman Inc. has the f011owing product information available: Sales price $12 pe

ID: 2576967 • Letter: B

Question

Bergman Inc. has the f011owing product information available:

Sales price $12 per unit

Variable costs $ 4 per unit

Fixed costs $15.600

Units sold 10,400

1. Refer to the Bergman Inc. information above. what is the break-even point in units;

A. 1,950

B. 891

C. 975

D. 2,400

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Poole Products Inc has the following product information available.

Sales price $25 per unit

Variable costs $10 per unit

Fixed costs $36.000

2. Refer to the Poole Products Inc. Information above. How many units need to be sold in order to earn a target profit of $249.000;

A. 8,143

B. 14,200

C. 16,600

D. 19,000

3. When calculating the break-even point in a multi-product environment. which of the following pieces of information would not be relevant?

A. Contribution margin per unit for each type of product

B. Each product percentage of total sales

C. Total fixed costs

D Fixed costs per unit

1 Break-even point in units = 15600/(12-4)= 1950 2 Units to be sold = (36000+249000)/(25-10)= 19000 3 Fixed costs per unit would not be relevant

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