Unit sold contribute to profit


Question 1. At a break-even point of 440 units sold, variable expenses were $4,928 and fixed expenses were $2,464. What will the 441st unit sold contribute to profit?

a.$5.6
b.$0
c.$11.2
d.$16.8

Question 2. Last year, Black Company reported sales of $680,000, a contribution margin of $204,000, and a net loss of $40,000. Based on this information, the break-even point was (rounded):

a.$680,000
b.$476,000
c.$813,333
d.$1,017,333

Question 3. The break-even point in dollar sales for Rice Company is $359,000 and the company's contribution margin ratio is 34%. If Rice Company desires a profit of $100,980, sales would have to total

a.$481,060
b.$425,647
c.$656,000
d.$582,040

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Accounting Basics: Unit sold contribute to profit
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