Author Question: SaleCo sells 8,400 units resulting in $120,000 of sales revenue, $35,000 of variable costs, and ... (Read 598 times)

schs14 · **on:** Mar 6, 2021

Question 1

Pacific Company sells only one product for $12 per unit, variable production costs are $3 per unit, and selling and administrative costs are $1.70 per unit. Fixed costs for 11,000 units are $6,000. The operating income is ________ when 11,000 units are sold.
◦ $8.45 per unit
◦ $6.75 per unit
◦ $7.30 per unit
◦ $4.70 per unit

Question 2

SaleCo sells 8,400 units resulting in $120,000 of sales revenue, $35,000 of variable costs, and $45,000 of fixed costs. The contribution margin percentage is ________.
◦ 62.5%
◦ 70.83%
◦ 33.33%
◦ 29.17%

triiciiaa · **Reply #1 on:** Mar 6, 2021

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