151. Assume that Krause Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $20 and $45 respectively. Krause has fixed costs of $350,000. The break-even point in units is:
A. 14,000 units
B. 25,278 units
C. 8,000 units
D. 10,769 units
152. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:
Product
|
Unit Selling
Price
|
Unit Variable
Cost
|
Unit Contribution
Margin
|
Arks
|
$120
|
$80
|
$40
|
Bins
|
80
|
60
|
20
|
|
|
|
|
What was Carter Co.'s sales mix last year?
A. 20% Arks, 80% Bins
B. 12% Arks, 28% Bins
C. 70% Arks, 30% Bins
D. 40% Arks, 20% Bins
153. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:
Product
|
Unit Selling
Price
|
Unit Variable
Cost
|
Unit Contribution
Margin
|
Arks
|
$120
|
$80
|
$40
|
Bins
|
80
|
60
|
20
|
|
|
|
|
What was Carter Co.'s weighted average unit selling price?
A. $200
B. $100
C. $ 80
D. $ 88
154. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:
Product
|
Unit Selling
Price
|
Unit Variable
Cost
|
Unit Contribution
Margin
|
Arks
|
$120
|
$80
|
$40
|
Bins
|
80
|
60
|
20
|
|
|
|
|
What was Carter Co.'s weighted average variable cost?
A. $140
B. $ 70
C. $ 64
D. $ 60
155. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:
Product
|
Unit Selling
Price
|
Unit Variable
Cost
|
Unit Contribution
Margin
|
Arks
|
$120
|
$80
|
$40
|
Bins
|
80
|
60
|
20
|
|
|
|
|
What was Carter Co.'s weighted average unit contribution margin?
A. $24
B. $60
C. $92
D. $20
156. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:
Product
|
Unit Selling
Price
|
Unit Variable
Cost
|
Unit Contribution
Margin
|
Arks
|
$120
|
$80
|
$40
|
Bins
|
80
|
60
|
20
|
|
|
|
|
Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?
A. 40,000 units
B. 12,000 units
C. 35,000 units
D. 28,000 units
157. If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, break-even sales of $4,500,000, fixed costs of $1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales?
A. 25%
B. 18%
C. 33.3%
D. 15%
158. If a business had sales of $4,000,000, fixed costs of $1,300,000, a margin of safety of 25%, and a contribution margin ratio of 40%, what was the break-even point?
A. $3,250,000
B. $2,800,000
C. $5,200,000
D. $1,000,000
159. If a business had sales of $4,000,000 and a margin of safety of 20%, what was the break-even point?
A. $5,000,000
B. $3,200,000
C. $12,000,000
D. $1,000,000
160. Forde Co. has an operating leverage of 4. Sales are expected to increase by 8% next year. Operating income is:
A. unaffected
B. expected to increase by 2%
C. expected to increase by 32%
D. expected to increase by 4 times