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Author Question: If breakeven point is 1,000 units, each unit sells for $31, and fixed costs are $30,000, then on a ... (Read 46 times)

amal

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Question 1

How many units would have to be sold to yield a target operating income of $26,000, assuming variable costs are $27 per unit, total fixed costs are $2,000, and the unit selling price is $32?
◦ 400 units
◦ 1,038 units
◦ 5,600 units
◦ 1,273 units

Question 2

If breakeven point is 1,000 units, each unit sells for $31, and fixed costs are $30,000, then on a graph the ________.
◦ total revenue line and the total cost line will intersect at $31,000 of revenue
◦ total cost line will be zero at zero units sold
◦ revenue line will start at $30,000
◦ total revenue line and the total cost line will intersect at $61,000 of revenue


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Marked as best answer by amal on Mar 6, 2021

LVPMS

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amal

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


bulacsom

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Reply 3 on: Yesterday
Excellent

 

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