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1) Danfield Corporation sells hot dogs for $3. The following is the projected income statement for 2014. Variable costs are the cost of the dogs, $1 each, plus a 10% sales commission paid to the worker. Sales Cost of Dogs Sold Gross Margin Operating Expenses Salaries and Commissions Rent Other Fixed Expenses Total Operating Expenses Net Income $120,000 40,000 80,000 30,000 24,000 8,750 62,750 $ 17,250 For Danfield, the number of dogs he needs to sell to break even are A) B) C) D) E) 34,033 35,000 37,000 29,853 none of these 2) Alice’s New Company makes diapers (lots of diapers!!) The company has three sizes of diapers, Infant, Small Baby, and Large Baby. The controller has prepared the following estimates for next year. (All projections are on a per box basis). Infant Small Baby Large Baby Selling Price Variable costs $22 12 $40 16 $60 24 The sales mix is 50% of Infant, 30% of Small Baby and 20%of Large Baby diapers. Estimated fixed costs are $10,000,000. The estimated weighted average contribution margin is A) B) C) D) E) 54.0% $36.00 $26.00 52.7% none of these 3) The sales needed to make breakeven are: A) B) C) D) E) $ 18,975,332.07 $ 27,608,777.80 $ 15,000,000.00 $ 9,250,259.26 none of these 4) How many boxes of SmallBaby diapers will Alice’s need to sell to make $4,000,000? A) B) C) D) E) 185,185 270,010 199,241 925,926 none of these 5) How many units does a company have to sell to make a profit of $100,000 if the selling price is $25 and the variable costs are $13 and the company has fixed costs of $750,000? A. B. C. D. E. 30,000 41,667 70,833 62,500 None of the above 6) Your club will sell Whatsits for $70.00. The players cost you $50 each. You rent a table in Wendys to sell the Whatsits. You pay Wendy’s $200 rent. How many Whatsits do you need to sell to make $500? A) B) C) D) E) 7) 15 10 35 20 Some other number Still on Whatsits, what is the break-even in dollars? A ) $ 700 B) $ 1,750 C) $ 1,050 D) $ 3,600 E) None of these Barney’s Pens produces three models of pens, regular, silver and gold. Price and costs of the three are as follows Regular Silver Gold Selling Price $ 20 $ 30 $60 Variable Costs 12 20 25 Fixed costs are $600,000 The sales mix is Regular 60%, Silver 10% and Gold 30% 8) What is the break-even in sales dollars? A) B) C) D) E) 9) How much must the sales volume be to make $300,000? A) B) C) D) E) 10) $ 1,875,580 $ 1,338,290 $ 1,500,000 $ 2,075,653 Some other number $ 1,875,000 $ 1,250,698 $ 1,500,000 $ 2,007,435 Some other number How many units of Regular must Cleveland Cliffs sell to breakeven? A) B) C) D) E) 40,149 50,000 43,458 31,255 Some other number