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101 a firm sells two products a and b for every unit of a the firm sells two units o 4299403

 

101. A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of A and B?

   

A. 31,000 of A and 31,000 of B.

B. 31,000 of A and 62,000 of B.

C. 10,333 of A and 20,667 of B.

D. 36,167 of A and 72,333 of B.

E. 62,000 of A and 31,000 of B.

102. The ratio of the sales volume for the various products sold by a company is called the: 

A. Current product mix.

B. Relevant mix.

C. Sales mix.

D. Inventory cost ratio.

E. Production ratio.

103. Baker Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $20, $30, and $40, respectively. Variable costs per unit are $12, $18, and $24, respectively. Fixed costs are $320,000. What is the break-even point in composite units? 

A. 1,111.

B. 1,600.

C. 2,666.

D. 4,000.

E. 5,000.

104. Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:

  

Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is (round to the nearest thousand): 

A. $20,000.

B. $289,000.

C. $400,000.

D. $629,000.

E. $740,000.

105. Wayward Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,500,000, calculate the firm's break-even point in sales dollars. 

A. $13,250,000.

B. $13,000,000.

C. $12,750,000.

D. $12,900,050.

E. $12,750,625.

106. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the contribution margin per unit if the machine is purchased. 

A. $22.50.

B. $26.00.

C. $29.50.

D. $28.50.

E. $27.50.

107. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in units if the new machine is purchased. 

A. 10,438 units.

B. 8,814 units.

C. 10,000 units.

D. 9,200 units.

E. 9,869 units.

108. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. What effect would the purchase of the new machine have on Winthrop's break-even point in units? 

A. 800 unit increase.

B. 800 unit decrease.

C. 5,714 unit increase.

D. 4,444 unit decrease.

E. No effect on the break-even point in units.

109. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in dollars with the purchase of the new machine. 

A. $500,000.

B. $440,678.

C. $521,923.

D. $480,000.

E. $460,000.

110. Baines Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit. 

A. $270.

B. $240.

C. $300.

D. $330.

E. $285.

 

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