Reference no: EM13604049
1.Patricia Company produces two products, X and Y, which account for 60 percent and 40 percent, respectively, of total sales dollars. Contribution margin ratios are 50 percent for X and 25 percent for Y. Total fixed costs are $120,000. What is Patricia's break-even point in sales dollars?
A) $300,000
B) $375,000
C) $342,856
D) $328,767
2.Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the break-even point in hours? (round to the nearest whole hour) A)
B)
C)
D)
E)
3.Dirth Company sells only one product at a regular price of $7.50 per unit. Variable expenses are 60% of sales and fixed expenses are $30,000. Management has decided to decrease the selling price to $6.00 in hopes of increasing its volume of sales. What is the contribution margin ratio when the selling price is reduced to $6 per unit? A)
B)
C)
D)
4.Paney Company makes calendars. Information on cost per unit is as follows:
|
Direct materials
|
$1.50
|
|
Direct labor
|
1.20
|
|
Variable overhead
|
0.90
|
|
Variable marketing expense
|
0.40
|
Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.What is the variable cost per unit?
A)
B)
C)
D)
E)