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5.Honeysuckle Manufacturing has the following data:
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| | | | |
| Selling Price | $ | 60 | |
| Variable manufacturing cost | $ | 33 | |
| Fixed manufacturing cost | $ | 250,000 | per month |
| Variable selling & administrative costs | $ | 9 | |
| Fixed selling & administrative costs | $ | 120,000 | per month |
| |
What dollar sales volume does Honeysuckle need to break even?
a.) $822,222.
b.) $833,333.
c.) $900,000.
d.) $1,233,333.
6.Eastwick produces and sells three products. Last month's results are as follows:
| | P1 | | P2 | | P3 |
| Revenues | $ | 100,000 | | $ | 200,000 | | $ | 200,000 |
| Variable costs | | 40,000 | | | 140,000 | | | 80,000 |
| |
Fixed costs total $200,000. What sales volume would generate an operating profit of $150,000? (Assume the current product mix.)
a.) $650,000.
b.) $610,000.
c.) $729,167.
d.) $850,000.
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