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Question 1 10 pts Consider the following information: (1) sales volume (units) - 8,000. (2) per unit sale price = $20.00, total fixed expenses = $120,000 and net loss - $24,000. Compute the sales volume required to achieve a BEFORE TAX target profit of $60,000. 10,000 units 12,000 units 15,000 units 18,000 units Question 2 10 pts West Collision Repair has fixed expenses = $80,000. Actual sales = $400,000 and total variable expenses = $160,000. Compute operating leverage. 1.5 O2 o 3 05 Question 3 10 pts Your company sells two products: A and B. Sales of A represent 40% of the company's total sales. Sales prices are: A = $80.00 and B = $125.00 Contribution margin %s for each product are: A = 25.0% and B 20.0%. Total fixed expenses = $598,000. Compute the weighted average contribution margin. $20.00 $22.50 $23.00 O $25.00 Question 4 10 pts Your company sells two products: A and B. Sales of A represent 40% of the company's total sales. Sales prices are: A = $80.00 and B - $125.00 Contribution margin %s for each product are: A = 25.0% and B 20.0%. Total fixed expenses = $598.000. Compute the sales required of Product B for the company to breakeven. $520,000 O $650.000 $985,000 $1.950.000 Question 5 10 pts Consider the following variable costing income statement: Units 20,000 Sales VE CM FE Net income Per Unit $25.00 $15.00 $10.00 Total $ 500,000 300,000 200,000 180,000 $ 20,000 Which equation reflects the income statement assumptions Total cost = $10.00 (X) + $180,000 Total cost = $15.00 (X) + $180.000 Net income = ($25.00 + $15.00)(X) + $180,000 Net income = ($25.00 - $15.00)(X) + $180,000

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