Reference no: EM131026797
31. A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $6, total fixed costs must be:
A) $65,000.
B) $90,000.
C) $125,000.
D) $215,000.
E) $275,000.
32. The sales level at which a company neither earns a profit nor incurs a loss is the:
A. Relevant range
B. Margin of safety
C. Step-wise variable level
D. Break-even point
E. Contribution margin
33. A company's product sells at $12 per unit and has a $5 per unit variable cost,98,000. The contribution margin per unit is.
A. $5.00
B. $7.00
C. $8.17
D. $12.00
E. $17.00
34. The difference between sales price per unit and variable cost per unit is the:
A. Gross profit from sale.
B. Gross margin per unit.
C. Fixed cost per unit.
D. Margin of safety per unit.
E. Contribution margin per unit
35. Sea Company reports the following information regarding its production cos.
Units produced 42000 units
Direct labor $35 per unit
Direct materials $28 per unit
Variable overhead $17 per unit
Fixed overhead $105,000 in total
Compute production cost per unit under variable costing
A. $28.00
B. $82.50
C. $80.00
D. $63.00
E. $35.00
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