Reference no: EM132829758

Problem 1: Burger Bob's Boathouse sells only one product. 7,000 units were sold In year resulting in $70,000 of sales revenue. Variable costs were $28,000 for the year, and fixed costs were $12,000. Break-even point in volume is:

Select one:

a. 7,000 units
b. 2,797 units
c. 2,000 units
d. 3,000 units

Problem 2: How many units would have to be sold to yield a target operating income of $22,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?

Select one:

a. 4,000 units
b. 4,400 units
c. 1,600 units
d. 4,800 units