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Sample Quiz #2 Questions – based on Chapters 5 and 6 1. If two [cost, activity] pairs are [$1,900, 170] and [$2,000, 210], what is the fixed cost amount in the linear equation of cost behavior which is based on these two pairs of data? A. B. C. D. $1,950 $2,000 $100 $1,475 2. Given these parameters for a company, what is the target income? A. B. C. D. $500 $2,500 $1,500 $3,750 Price per unit Target income quantity Variable cost per unit Fixed cost $50 75 $30 $1,000 3. The data for a company’s two products in the first period of operation is the following: Product Price per unit Variable cost per unit Quantity made and sold Alpha $13.75 $10.00 600 Sigma $68.75 $36.00 200 A. B. C. D. Fixed cost is $6,600. What is the breakeven quantity of each product which preserves the product mix? Answers 5/29/2016 1. D 2. A 3. A 450, 150 750, 250 900, 300 300, 100