Reference no: EM132603563

Burger Bob's Boathouse sells only one product. 7,000 units were sold In year resulting in $70,000 of sales revenue. Variable costs were $28,000 for the year, and fixed costs were $12,000.

Question 1: Contribution margin per unit is

a. $4.00

b. $4.29

c. $6.00

d. $10.00

e. $5.71

Question 2: Break-even point in volume is

a. 2,000 units.

b. 3,000 units.

c. 5,000 units.

d. 7,000 units.

e. 2,797 units.

Question 3: The number of units required to be sold to achieve $60,000 of operating profit is

a. 10,000 units.

b. 11,666 units.

c. 15,000 units.

d. 18,000 units.

e. 12,000 units.