Question 1
Breakeven point in units is ________.
◦ total costs divided by profit margin per unit
◦ contribution margin per unit divided by total cost per unit
◦ fixed costs divided by contribution margin per unit
◦ the sum of fixed and variable costs divided by contribution margin per unit
Question 2
Burgandy Manufacturing produces a single product that sells for $80. Variable costs per unit equal $35. The company expects total fixed costs to be $90,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. What is the current breakeven point in terms of number of units?
◦ 2,000 units
◦ 1,125 units
◦ 2,572 units
◦ 2,046 units
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