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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. (give explanation)
Question 1: Contribution margin per unit is
a. $4.00
b. $4.29
c. $6.00
d. $10.00
e. $5.71
Question 2: Break-even point in volume is
a. 2,000 units.
b. 3,000 units.
c. 5,000 units.
d. 7,000 units.
e. 2,797 units.
Question 3: The number of units required to be sold to achieve $60,000 of operating profit is
a. 10,000 units.
b. 11,666 units.
c. 15,000 units.
d. 18,000 units.
e. 12,000 units.
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