Question 1 - Coronado Industries requires sales of $2500000 to cover its fixed costs of $300000 and to earn net income of $400000. What percent are variable costs of sales?
72.0%
12.0%
16.0%
28.0%
Question 2 - Bonita reported the following information for the current year: Sales (62000 units) $1240000, direct materials and direct labor $620000, other variable costs $62000, and fixed costs $360000. What is Bonita's break-even point in units?
50727.
40000.
36000.
32728.
Question 3 - The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 70 a night. Operating costs are as follows.
Salaries$ 5,200 per month
Utilities$ 1,300 per month
Depreciation$ 1,200 per month
Maintenance$ 826 per month
Maid service$ 17 per room
Other costs$ 32 per room
Determine the inn's break-even point in number of rented rooms per month.
Determine the inn's break-even point in dollars.