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Home / Questions / If the sale price per unit is $26, the variable expense per unit is $19.50, and the breake

If the sale price per unit is $26, the variable expense per unit is $19.50, and the breake

If the sale price per unit is $26, the variable expense per unit is $19.50, and the breakeven sales in dollars is $47,320, what are total fixed expenses?

A) $11,830

B) $1,820

C) $15,773

D) $280

22) Busson Company management has budgeted the following amounts for its next fiscal year:

Total fixed expenses

$58,300

Sale price per unit

$50

Variable expenses per unit

$30

 

If Busson Company can reduce fixed expenses by $10,300, how will breakeven sales in units be affected?

A) Increase by 515 units

B) Increase by 129 units

C) Decrease by 515 units

D) Decrease by 129 units

23) Royal Corporation management has budgeted the following amounts for its next fiscal year:

Total fixed expenses

$580,000

Sale price per unit

$60

Variable expenses per unit

$40

 

If Royal Corporation spends an additional $11,500 on advertising, sales volume should increase by 2,300 units. What effect will this have on operating income?

A) Increase of $46,000

B) Increase of $34,500

C) Decrease of $46,000

D) Decrease of $34,500

24) Flash Corporation management has budgeted the following amounts for its next fiscal year:

Total fixed expenses

$480,000

Sale price per unit

$55

Variable expenses per unit

$25

 

If Flash Corporation can reduce fixed expenses by $20,000, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

A) $1.25

B) $26.25

C) $30.00

D) $28.75

25) Dover Industries management has budgeted the following amounts for its next fiscal year:

Total fixed expenses

$630,000

Sale price per unit

$30

Variable expenses per unit

$21

 

If fixed expenses increase by 10%, to maintain the original breakeven sales in units, the selling price per unit would have to be:

A) increased by 3%.

B) increased by 37%.

C) increased by 103%.

D) decreased by 63%.

Dec 11 2019 View more View Less

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