60.1K

Verified Solution

Link Copied!

Wimpy Inc. produces and sells a single product. The selling price of the product is $185.00 per unit and its variable cost is $55.50 per unit. The fixed expense is $404,670 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

• $1,348,900

• $944,230

• $578,100

• $404,670

Derst Inc. sells a particular textbook for $37. Variable expenses are $27 per book. At the current volume of 48,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:

• $480,000

• $1,776,000

• $2,256,000

• $1,296,000

Ferkil Corporation manufacturers a single product that has a selling price of $15.00 per unit. Fixed expenses total $51,000 per year, and the company must sell 8,500 units to break even. If the company has a target profit of $15,000, sales in units must be:

• 10,227 units

• 9,500 units

• 11,000 units

• 11,900 units

Mcmurtry Corporation sells a product for $280 per unit. The product's current sales are 13,900 units and its break-even sales are 10,425 units. The margin of safety as a percentage of sales is closest to:

• 25%

• 33%

• 75%

• 67%

Bristo Corporation has sales of 2,375 units at $40 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, the degree of operating leverage is:

• 1.90

• 9.50

• 2.07

• 7.60

Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,920 and variable expenses of $6,972. Product Y45E had sales of $26,040 and variable expenses of $11,718. The fixed expenses of the entire company were $22,300. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:

• would decrease.

• would increase.

• could increase or decrease.

• would not change.

Answer & Explanation Solved by verified expert

See Answer