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&#39;s total fixed costs are \$1,612,000. Selling prices and cost information for both products follow. What is the firm&#39;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&#39;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&#39;s sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm&#39;s annual fixed costs total \$6,500,000, calculate the firm&#39;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&#39;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.