5.Honeysuckle Manufacturing has the following data: Top of Form ...
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Accounting
5.Honeysuckle Manufacturing has the following data:
Top of Form
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| Selling Price | $ | 60 |
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| Variable manufacturing cost | $ | 33 |
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| Fixed manufacturing cost | $ | 250,000 | per month |
| Variable selling & administrative costs | $ | 9 |
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| Fixed selling & administrative costs | $ | 120,000 | per month |
What dollar sales volume does Honeysuckle need to break even?
a.) $822,222.
b.) $833,333.
c.) $900,000.
d.) $1,233,333.
6.Eastwick produces and sells three products. Last month's results are as follows:
|
| P1 |
| P2 |
| P3 | |||
| Revenues | $ | 100,000 |
| $ | 200,000 |
| $ | 200,000 |
| Variable costs |
| 40,000 |
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| 140,000 |
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| 80,000 |
Fixed costs total $200,000. What sales volume would generate an operating profit of $150,000? (Assume the current product mix.)
a.) $650,000.
b.) $610,000.
c.) $729,167.
d.) $850,000.
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