Q1. K-Henry's Dull Diner has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must K-Henry's generate in order to reach the break-even point?
A) $282,880
B) $1060,800
C) $208,476
D) $1,105,000
Q2. Conan Company's monthly activity level ranged from a low of 17,000 units in May to a high of 26,000 units in October. Average production was 20,000 units per month. Utilities cost was $8,250 in May and $10,500 in October. The variable utility cost per unit, to the nearest cent, is:
A) $0.49.
B) $0.47.
C) $0.25.
D) $0.40.
Q3. A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?
A) $75.00
B) $62.50
C) There is not enough information in the problem to answer
D) $67.50
Q4. At Caleb's Tights, the break-even point is 2,000 units. If fixed costs total $300,000 and variable costs are $30 per unit, what is the selling price per unit?
A) $210
B) $180
C) $5
D) $150