Question 1: The company computes that each unit of production incurs variable operating costs of $34 and sells for $45 . The company's fixed costs are $21,250 per year. Find the number of units per year the company must sell to earn $35,000 of operating income.
a. 5,114
b. 5,625
c. 6,188
d. 4,226
e. 4,649
Question 2: Which of the following descriptions of the New York Stock Exchange is false?
a. daily volume averages $30-to-$50 billion and about 2,400-to-3,000 securities are listed
b. it has the largest market capitalization of any stock exchange in the world
c. the NYSE is a profit-making shareholder-owned self-regulatory organization
d. the NYSE asks companies for permission and pays them for the right to trade their securities
e. securities mostly trade by open outcry (yelling & screaming)
Question 3: The most recent annual report lists company Sales revenue at $72,800 . Cost analysis suggests that annual Total fixed costs equal $34,000 and Total variable costs equal $30,300 . The company believes that the ratio of Sales revenue to Total variable costs is constant. Find the percentage decline in annual Sales revenue that would cause the company to fall to its operating breakeven point.
a. -18.2%
b. -24.2%
c. -22.0%
d. -20.0%
e. -16.5%