Sales per unit Variable cost per unit Product Y...
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Accounting
|
| Sales per unit | Variable cost per unit |
| Product Y | $ 120 | $ 70 |
| Product X | 500 | 200 |
Fixed costs total $300,000 annually. The expected mix in units is 60% for product Y and 40% for product X.
- How much is Kathies break-even sales in unit?
a. 857 b. 1,111 c. 2,000 d. 2,459
- How much is Kathies break-even sales in pesos?
a. $300,000 b. $420,000 c. $475,000 d. $544,000
B.
Marcky company sells one product for $100 per unit. Variable costs are $60 per unit. Fixed costs are $150,000. Marckys results of operations for 2018 follow:
Income Statement
For the Year Ended December 31, 2018
Sales $ 500,000
Variable costs 300,000
Contribution margin $ 200,000
Fixed costs 150,000
Net operating income $ 50,000
- What are the degrees of operating leverage for Marcky Company?
a. 1 b. 3 c. 4 d. 10
- What is the margin of safety in sales revenue?
a. $125,000 b. $200,000 c. $375,000 d. $500,000
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