Answered You can hire a professional tutor to get the answer.
Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000.
1.Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000. What would be the breakeven point in units if the fixed costs decreased by $2,000?
a. 500
b. 600
c. 1,000
d. 1,200
2.Our company sells its product for $100 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 300, and we expect to sell 350 units. What is the margin of safety in dollars?
a.($5,000)
b. 3,000
c.($3,000)
d.$5,000
3.What are costs that do not change in total over a wide range of volume?
a.variable costs
b.fixed costs
c.mixed costs
d.relative costs
4.Fixed costs per unit will:
A.increase as volume increases
b. remain the same regardless of changes in volume
c. decrease as volume increases
d.decrease as volume decreases
5.Which of the following is a fixed cost?
a.direct materials
b.wages of production workers
c.salary of production manager
d. sales commission
