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What is smith ltds break-even point

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Q1. Smith Ltd sells rugby balls for $20 each and incurs variable costs of $15 per ball. Smith Ltd's break-even point is 40,000 units. What is Smith Ltd's profit when 50,000 units are sold?

a. $1,000,000

b. None of the options given

c. $50,000

d. $250,000

Q2. Smith Ltd supplied the following information:

Sales, $50 per unit; variable costs, $20 per unit; fixed costs, $1 800; units sold, 200

From this information we can determine that the contribution margin and break-even point are:

a. $20 and 60 units

b. $20 and 200 units

c. $30 and 200 units

d. $30 and 60 units

Q3. Smith Ltd sells a product for $100 per unit; its variable costs are $70 per unit and its total fixed costs are $90,000. What is Smith Ltd's break-even point?

a. 1,286 units

b. 64,286 units

c. 3,000 units

d. 150,000 units

Reference no: EM132698382

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