7) If direct labor and direct material costs increase by $1each, contribution margin ________.
A) increases by $20,000
B) increases by $14,000
C) decreases by $24,000
D) decreases by $14,000
Answer the following questions using the information below:
Alex Furniture sells a table for $850. His fixed costs are$25,000, while his variable costs are $500 per table. He currentlyplans to sell 175 tables this month.
8) What is the budgeted revenue for the month assuming that Alexsells 175 tables?
A) $145,750
B) $148,750
C) $150,000
D) $142,250
9) What is the budgeted operating income for the month assumingthat Alex sells 175 tables?
A) $45,250
B) $37,000
C) $36,250
D) $36,750
10) Winnz sells 8,000 units resulting in $100,000 of salesrevenue, $35,000 of variable costs, and $45,000 of fixed costs. Thecontribution margin percentage is ________.
A) 66.67%
B) 65.0%
C) 37.5%
D) 75.0%
11) Winnz sells 8,000 units resulting in $100,000 of salesrevenue, $35,000 of variable costs, and $45,000 of fixed costs. Toachieve $150,000 in operating income, sales must total________.
A) $440,000
B) $160,000
C) $130,000
D) $300,000
Answer the following questions using the information below:
Star Jewelry sells 500 units resulting in $75,000 of salesrevenue, $28,000 of variable costs, and $18,000 of fixed costs.
12) Breakeven point in units is ________.
A) 196 units
B) 203 units
C) 185 units
D) 192 units
