Reference no: EM132967913
Problem 1: 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. Break-even point in volume is:
Select one:
a. 3,000 units
b. 2,000 units
c. 7,000 units
d. 2,797 units
Problem 2: How many units would have to be sold to yield a target operating income of $22,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?
Select one:
a. 4,400 units
b. 4,800 units
c. 4,000 units
d. 1,600 units
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