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49) 49) Edge Inc. had two products-Le Chaud and Le Frais. Financial data for both the products follow: Le Chaud Le Frais 2,200 units 800 units $1,000 750 5% Unit Sale price per unit Variable manufacturing cost per unit Sale commission (% of sales) $500 320 7% It had two sale executives-Jack Lynch and Peter Cho. Each of them sold a total of 1,500 units during the month of March, 2015 Jack had a sales mix of 70% Le Chaud and 30% Le Frais. Peter had a sales mix of 60% Le Chaud and 40% Le Frais. Based on the above information, calculate Peters total contribution to company profits? B) $250,500 D) $230,500 A) $655.000 C) $425,250 50) s0) Which of the following statements is true if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant? A) The contribution margin increases. C) The breakeven point remains the same. B) The breakeven point increases D) The breakeven point decreases UE/FALSE. Write T if the statement is true and 'F' if the statement is false. 51) The fundamental assumption of cost-volume-profit (CVP) analysis is that in the long-run fixed 51) costs become variable costs. 52) The margin of safety can be used to evaluate a company's plans for the future. 53) If a company reduces its fixed costs, the operating income will increase by the same amount as the 52) 53) cost reduction. 54) 55) 56) 57) 54) If variable costs go up, and all other factors remain the same, the margin of safety will become smaller 55) Total variable costs change in direct proportion to a change in volume 56) Absorption costing considers fixed selling and administrative costs as product costs. 57) When there are no units in the beginning finished goods inventory and the units produced are more than the units sold, the operating income will be higher under absorption costing than variable costing 58) Fixed costs divided by contribution margin per unit equals breakeven point in unit sales 59) Variable costing is used for external reporting purposes, and absorption costing is used for internal 59) decision-making purposes 60) Grantham Company sells two products, X and Y. For the coming year, Grantham predicts the sale 60) of 5,000 units of X and 10,000 units of Y. The contribution margins of the two products are $5 and $3, respectively. The weighted-average contribution margin would be $5.50

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