Reference no: EM132836878

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:

Option 1: 2000 UNITS
Option 2: 2797 UNITS
Option 3: 7000 UNITS
Option 4: 3000 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?

Option 1: 4800 UNITS
Option 2: 1600 UNITS
Option 3: 4000 UNITS
Option 4: 4400 UNITS