Question

need hwlp question 11

2. For every unit of Regular the firm sells two Ilm's total fixed costs are $1,612,000. Selling prices and cost for both products follow. What is the firm's break-even point in units of Regular and information for h Ultra? Product Regular Ultra Unit Sales Price Variable Cost Per Unit $ 20 24 $8 Regiz Ultra 2012 A) 31,000 Regular units and 31,000 Ultra units. BY 31,000 Regular units and 62,000 Ultra units. C) 10,333 Regular units and 20,667 Ultra units. D) 36,167 Regular units and 72,333 Ultra units. E) 62,000 Regular units and 31,000 Ultra units. _= 1612,000 co 52 Resular = 31,00 11) Flannigan Company manufactures and sells a single product that sells for SASO per unit: Ultra = 2.311 variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income. A) 4,444. B) 7,500. C) 6,650. D) 10,694. E) 11,750. 12) Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company. A) $1,560,000. B) $2,000,000. C) $2,200,000. D) $2,895,652 E) $2,460,000. (13)At Midland Company's break-even point of 120,000 units, fixed costs are $2,400,000 and variable costs are $4,200,000 in total. The unit sales price is: A) $25. B) $35. C) $55. D) $75. E) $95.

Answer 1

Contribution margin = $450 - $270 = $180

Total Contribution margin to be earned = $800,000 + $1,125,000 = $1,925,000

Unit sales = $1,925,000 / $180 = 10,694 units

Option D