# 14 young guns company which sells tents has provided the following information price 4307772

14) Young Guns Company, which sells tents, has provided the following information:

 Price per unit \$40 Variable cost per unit 12 Fixed costs per month \$12,600

What are the required sales in units for Young to break even?

A) 252 units

B) 1,050 units

C) 315 units

D) 450 units

15) Young Company has provided the following information:

 Price per unit \$40 Variable cost per unit 12 Fixed costs per month \$12,600

What is the amount of sales in dollars required for Young to break even?

A) \$1,050

B) \$18,000

C) \$5,400

D) \$12,600

16) Roberts Tobacco Company has fixed costs of \$10,000. Their contribution margin ratio is 40% and ratio of selling expenses to sales is 20%. What is the breakeven point in sales dollars?

A) \$50,000

B) \$25,000

C) \$4,000

D) \$2,000

17) The Perfect Fit Company sells hand-sewn shirts for \$40 per shirt. It incurs monthly fixed costs of \$5,000. The contribution margin ratio is calculated to be 20%. What is the breakeven point in units?

A) 950 units

B) 1,750 units

C) 1,125 units

D) 625 units

18) Jenna Manufacturers produces flooring material. The monthly fixed costs are \$10,000 per month. The unit selling price is \$75 and variable cost per unit is \$35. If Jenna's managers create a CVP graph from volume levels of zero to 500 units, at what sales level (in units) will the revenue and total cost lines intersect?

A) 250 units

B) 190 units

C) 240 units

D) 275 units

19) Jupiter Company sells glass vases at a wholesale price of \$3 per unit. The variable cost of manufacture is \$1.75 per unit. The fixed costs are \$7,500 per month. It sold 5,500 units during this month. Calculate Jupiter's operating income (loss) for this month.

A) \$9,000

B) \$625

C) (\$625)

D) (\$7,500)

20) Jupiter Company sells glass vases at a wholesale price of \$2.50 per unit. The variable cost of manufacture is \$1.75 per unit. The monthly fixed costs are \$7,500. Its current sales are 25,000 units per month. If the company wants to increase its operating income by 20%, how many additional units, must it sell? (Round intermediate calculations to two decimal places.)

A) 145,000 glass vases

B) 7,500 glass vases

C) 13,500 glass vases

D) 3,000 glass vases

21) Colin was a professional classical guitarist until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for \$700 and the fixed monthly operating costs are as follows:

 Rent and utilities \$ 800 Wages and benefits to luthier 2,500 Other expenses 480

Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, \$0.60 went to cover his fixed costs, and that anything past that point was pure profit.

How many guitars does Colin have to sell each month to break even?

A) 6 guitars

B) 14 guitars

C) 7 guitars

D) 9 guitars

22) Colin was a professional classical guitarist until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for \$700 and the fixed monthly operating costs are as follows:

 Rent and utilities \$1,000 Wages and benefits to luthier 2,500 Other expenses 481

Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, \$0.60 went to cover his fixed costs, and that anything past that point was pure profit.

What is the amount of revenue Colin should earn each month to break even?

A) \$9,952

B) \$6,635

C) \$4,968

D) \$5,833

23) Colin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier) and started a small shop to make and sell Spanish guitars. The guitars sell for \$700 and the fixed monthly operating costs are as follows:

 Rent and utilities \$1,210 Wages and benefits to luthier 2,500 Other expenses 480

Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, \$0.65 went to cover his fixed costs, and that anything past that point was pure profit.

Colin wishes to earn \$4,000 of operating profit each month. Calculate the number of guitars Colin will have to sell to achieve the target profit.

A) 39 guitars

B) 33 guitars

C) 15 guitars

D) 18 guitars

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