Reference no: EM13604041

1. The break-even point is when

A)the company is earning a small profit.
B)total sales equal variable costs.
C)total sales equals operating income.
D)the company is operating at a loss.
E)total revenue equals total cost.

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 variable cost ratio?

A)50%
B)60%
C)40%
D)33%
E)67%

3.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 contribution margin ratio? A)40%
B)33%
C)60%
D)50%
E)67%

4.A company provided the following data:

Selling price per unit	$60
Variable cost per unit	$40
Total fixed costs	$400,000

What is the break-even point in units?

A)6,667
B)12,000
C)13,333
D)20,000
E)10,000

5.Foster Company makes power tools. The budgeted sales are $420,000, budgeted variable costs are $147,000, and budgeted fixed costs are $227,500. What is the break-even point in sales dollars?

A)$567,000
B)$650,000
C)$420,000
D)$350,000
E)$780,000

6.Foster Company makes power tools. The budgeted sales are $420,000, budgeted variable costs are $147,000, and budgeted fixed costs are $227,500. What is the contribution margin?

A)$90,000
B)$36,000
C)$374,500
D)$273,000
E)$183,000