60.1K

Verified Solution

Link Copied!

Assume that sales are predicted to be $7,500, the expected contribution margin is $3,000, and a net loss of $500 is anticipated. The break-even point in sales ($) is: Select one: a. 5,833 b. 8,000 c. 8,750 d. 6,250 e. 4,167 At the breakeven point Select one: a. Fixed costs will be equal to variable costs b. Sales will be equal to variable costs plus target profit c. Fixed costs will be equal contribution margin minus variable costs d. Sales will be equal to variable costs minus fixed costs e. Sales will be equal to fixed costs plus zero target profit plus variable costs XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units: Variable costs $32,500; Fixed costs $25,000; Mixed costs $21,500; Total costs $79,000. During October, the activity level was 16,000 units, and the total costs incurred were $178,000. If the activity level were expected to be 8,000 units for the month of December, what amount of total costs would be expected? Select one: a. $115,000 b. $124,000 c. $133,000 d. None of the answers given e. $106,000 The break-even point is that level of activity where: Select one: a. variable cost equals fixed cost. b. sales revenue equals fixed cost. c. total contribution margin equals the sum of variable cost plus fixed cost. d. contribution margin equals fixed cost. e. sales revenue equals total variable cost

Answer & Explanation Solved by verified expert

See Answer