Dartmouth Company produces a single product with a price of $12, variable cost per unit of $3, and total fixed cost of $7,200. 1. Refer to the information for Dartmouth above. Dartmouth’s break-even...

of $3, and total fixed cost of $7,200.

1. Refer to the information for Dartmouth above. Dartmouth’s break-even point in units

a. is 600.

b. is 480.

c. is 1,000.

d. is 800.

e. cannot be determined from the information given.

2. Refer to the information for Dartmouth above. The variable cost ratio and the contribution margin ratio for Dartmouth are

Variable cost ratio Contribution margin ratio

a. 80%                         80%.

b. 20%                         80%.

c. 25%                         75%.

d. 75%                         25%.

e. The contribution margin ratio cannot be determined from the information given.