Reference no: EM131725036

Question 1 - Coronado Industries requires sales of $2500000 to cover its fixed costs of $300000 and to earn net income of $400000. What percent are variable costs of sales?

72.0%

12.0%

16.0%

28.0%

Question 2 - Bonita reported the following information for the current year: Sales (62000 units) $1240000, direct materials and direct labor $620000, other variable costs $62000, and fixed costs $360000. What is Bonita's break-even point in units?

50727.

40000.

36000.

32728.

Question 3 - The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 70 a night. Operating costs are as follows.

Salaries$ 5,200 per month

Utilities$ 1,300 per month

Depreciation$ 1,200 per month

Maintenance$ 826 per month

Maid service$ 17 per room

Other costs$ 32 per room

Determine the inn's break-even point in number of rented rooms per month.

Determine the inn's break-even point in dollars.