Reference no: EM132516934

Problem 1: McCoy Bus Lines Ltd. operates a bus route between Kingston and Toronto every day. Bus tickets are sold at $35 for adults, $20 for children, and $15 for seniors. The company sells 80% of its tickets to adults and 10% to each of the other two categories. Variable costs are $14.70 per passenger and fixed costs total $21,000 per month. How many tickets will be sold to adults at the breakeven point?

A. 2,432 tickets

B. 1,000 tickets

C. 1,035 tickets

D. 1,250 tickets

E. 1,946 tickets

Problem 2: Lacy's Department Store has a cost of goods sold of $110 for each of its men's suits. In March, management expects to sell 600 suits. Management wants to have 100 men's suits in inventory at the end of March to prepare for the summer season. The inventory for men's suits at the end of April is expected to be 60 suits. What dollar amount of men's suits should be purchased in March?

A. Lacy's Department Store should purchase $61,600 worth of suits in March.

B. Lacy's Department Store should purchase $70,400 worth of suits in March.

C. Lacy's Department Store should purchase $59,400 worth of suits in March.

D. Lacy's Department Store should purchase $77,000 worth of suits in March.

E. Lacy's Department Store should purchase $66,000 worth of suits in March.