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1. Conan Company has total fixed costs of $112,000. Its product sells for $37 per unit and variable costs amount to $19 per unit. Next year Conan Company wishes to earn a pretax income that equals 19% of fixed costs. How many units must be sold to achieve this target income level? (Round your answer to the next whole amount.)

14,968
14,908
14,808
7,405

7,424

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A company wishes to earn a pretax income equal to 30% of total fixed costs. Its product sells for $52.25 per unit. Total fixed costs equal $157,400 and variable costs per unit are $34.00. How many units must this company sell to meet its goal? (Round answer to complete units.

3,916
10,660
6,018
8,625

11,212

Schmidt Inc., manufactures inexpensive cameras that sell for $55.10. Fixed costs are $802,230 and variable costs are $33.00 per unit. Schmidt can buy a newer production machine that will increase fixed costs by $15,570 per year, but will increase variable costs by 10% per unit. What are the original and the new breakeven points in this situation?

Original 36,300 units; New 37,005 units.
Original 24,310 units; New 41,844 units.
Original 36,300 units; New 42,672 units.
Original 36,300 units; New 43,500 units.
Original 43,500 units; New 37,005 units.
Assume that sales are predicted to be $3,900, the expected contribution margin is $2,730, and a net loss of $350 is anticipated. The break even point in sales dollars is:
$4,668
$4,664
$4,612
$4,690
$4,400

Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:

M N O
Unit sales price $9.2 $6.2 $8.2
Unit variable costs 4.1 3.1 4.1

Total fixed costs are $422,940. The break even point in sales dollars for the current sales mix is:

$458,180
$569,180
$909,180
$798,180
$17,921

If a firm’s forecasted sales are $210,000 and its break even sales are $180,000, the margin of safety in dollars is:

rev: 03_07_2013_QC_27973

$393,000
$390,000
$391,000
$30,000
$389,000
A product sells for $300 per unit, and its variable costs per unit are $137. The fixed costs are $428,000. What is the break even point in dollar sales? (Round the contribution ratio to the nearest whole percent.)
$1,223,218
$792,593
$427,376
$430,626
$789,809

A company’s product sells at $16.00 per unit and has a $7.00 per unit variable cost. The company’s total fixed costs are $127,800.

The break even point in units is:

18,257
5,557
14,200
7,100
7,988
A company manufactures and sells a product for $130 per unit. The company’s fixed costs are $69,640, and its variable costs are $91 per unit. The company’s break even point in units is: (Round your answer to the next whole amount.)
1,930
1,874
1,799
1,786
1,773

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