If you have fixed costs of $20,000 and it costs you $10 per unit to...
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Accounting
If you have fixed costs of $20,000 and it costs you $10 per unit to produce each unit. At what dollar amount do you break even if you can sell each unit for $15?
Group of answer choices
$60,000
$ 4,000
$20,150
None of the choices are correct.
$20,000
Which one of the following is not a basic CVP assumption?
Group of answer choices
Total variable costs are constant.
JC's Auto Parts sells oil filters (20%), air filters (10%), and 1 pint cans of oil (70%). Oil filters cost $3 and sell for $7; air filters cost $8 and sell for $15; and pints of oil cost $3 and sell for $5. How many units must be sold to achieve a pretax target income of $40,000 assuming fixed costs are $14,000? (Hint: Remember to compute and use the weighted average contribution margin.)
Group of answer choices
1,920 oil filters; 13,440 air filters; 3,840 cans of oil
2,000 oil filters; 1,000 air filters; 7,000 cans of oil
None of the choices are correct.
1,100 oil filters; 550 air filters; 3,850 cans of oil
3,840 oil filters; 1,920 air filters; 13,440 cans of oil
19,200 oil filters; 19,200 air filters; 19,200 cans of oil
Total fixed costs are constant.
Variable costs per unit are constant.
Selling price per unit is constant.
The above are all CVP assumptions.
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