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Q.1) Print House, Inc., produces and sells laser jet printers for $1,400 each. The variable costs of each printer total $1,000 while total annual fixed costs are $300,000. The Company sells 1,250 units in 2017.

Required ;

a) The Companys profit for 2017.

b) The Companys break-even point in units and dollars.

c) The Companys sales revenue for 2017.

d) The Companys margin of safety in units, dollars, and percentage?

Q.2)

Sun Co. plans to make 20,000 lawn mowers at its plant. Fixed costs are $1,000,000 and variable costs are $200 per lawn mower. What is the average cost per lawn mower?

A. $500

B. $100

C. $600

D. $400

E. None of the above

Q.3)

Fairfield Company management has budgeted the following amounts for its next fiscal year:

Total fixed expenses	$750,000
Sale price per unit	$40
Variable expenses per unit	$25

If Fairfield Company increases variable expenses by $1 and decreases fixed expenses by $50,000, how will breakeven sales in units be affected?

A. Increase by 1,333 units

B. Decrease by 7,562 units

C. Decrease by 1,900 units

D. Decrease by 1,500 units

E. No change

Q.4)

Excellent Company sells accounting textbooks. The following information summarizes the companys operating expenses for 2017:

January 1, 2017 beginning merchandise inventory $ 10,000

December 31, 2017 ending merchandise inventory 7,000

Purchases 97,000

Selling and Administrative Expenses 63,000

Sales Revenue $180,000

What is the gross profit?

A. $ 17,000

B. $ 30,000

C. $ 83,000

D. $ 80,000

E. $105,000

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