Reference no: EM132660752

Problem 1: Smith Ltd sells rugby balls for $20 each and incurs variable costs of $15 per ball. Smith Ltd''s break-even point is 40,000 units. What is Smith Ltd's profit when 50,000 units are sold?

Select one:

a. $1,000,000
b. None of the options given
c. $50,000
d. $250,000

Problem 2: Smith Ltd supplied the following information:

Sales, $50 per unit; variable costs, $20 per unit; fixed costs, $1 800; units sold, 200
From this information we can determine that the contribution margin and break-even point are:

Select one:

a. $20 and 60 units
b. $20 and 200 units
c. $30 and 200 units
d. $30 and 60 units

Problem 3: Smith Ltd sells a product for $100 per unit; its variable costs are $70 per unit and its total fixed costs are $90,000. What is Smith Ltd's break-even point?

Select one:

a. 1,286 units
b. 64,286 units
c. 3,000 units
d. 150,000 units