Questions:
1. Skyline Corp has a selling price of $27 per unit, variable costs of $24 per unit, and fixed costs of $15,300. What sales revenue is needed to break-even?
a $137,700
b $122,400
c $51,000
d $5,100
2. Orchid Corp. has a selling price of $20, variable costs of $16 per unit, and fixed costs of $26,000. If Orchid sells 13,000 units, contribution margin will equal 03-
a $26,000
b $140,000
c $130,000
d $52,000
3. Fremont, which uses the high-low method, reported total costs of $10.20 per unit at its lowest production level, 6,000 units. When production tripled to its highest level, the total cost per unit dropped to $6.80. Fremont would estimate its total fixed cost as
a $30,600
b $61,200
c $6.80
d $17.00
4. Maple Corp. has a selling price of $26, variable costs of $16 per unit, and fixed costs of $24,000. Maple expects profit of $306,000 at its anticipated level of production. What is MapleAc€?cs unit contribution margin?
a $10
b $34.00
c $13.00
d $26