Reference no: EM132942353

Data for Phantom Company for 2014

Sales $800,000

Variable costs $450,000

Fixed costs $250,000

Number of units sold 25000

Problem 1: What will the contribution margin per unit?

a. $22.00

b. $14.00

c. $6.25

d. $17.50

Problem 2: What will be breakeven sales in unit?

a. 571,429 units

b. $571,429

c. 17,857 units

d. $17,857

Problem 3: Assume that Phantom Company sold 65,000 units for 2015; what will be the resulted Net Income for the company?

a. $1,380,000

b. ($81,250)

c. $260,000

d. $660,000

Problem 4: What will be margin of safety when the current sale is $1,500,000?

a. 98.81%

b. $928,571.43

c. 61.90%

d. 162.50%

Problem 5: Assume that Phantom Company sold 15,000 units for 2016; what will be the resulted Net Profit for the company?

a. $50,000

b. ($40,000)

c. ($220,000)

d. $6,250