Reference no: EM132659465
Problem 1: An increase in the unit selling price _____.
a.decreases the contribution margin and decreases the break-even point
b.increases the contribution margin and increases the break-even point
c.decreases the contribution margin and increases the break-even point
d.increases the contribution margin and decreases the break-even point
Problem 2: Calculate the sales in units necessary to earn the target profit of $100,000 for Gloomy Inc. using the following information:
Unit selling price $90
Unit variable cost $40
Fixed costs $250,000
a.3,000 units
b.2,000 units
c.7,000 units
d.5,000 units
Problem 3: From the information given below, calculate operating leverage.
Sales $300,000
Variable costs$150,000
Fixed costs $100,000
a.3.0
b.3.5
c.2.0
d.2.5
Problem 4: Calculate the total contribution margin from the following information:
Sales 10,000 units
Sales price per unit$25 per unit
Variable cost per unit 15 per unit
Fixed costs$75,000
a.$150,000
b.$75,000
c.$100,000
d.$25,000