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Question 36 (2 points) Use the following information to answer questions 36 -40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable overhead per unit $1.40 Factory overhead that does not change with volume $327,600 General and administrative expenses $194,000 What is the contribution margin per unit? 1) $4.00 2) $5.90 3) $7.10 4) $2.60 Question 37 (2 points) Use the following information to answer questions 36 -40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable overhead per unit $1.40 Factory overhead that does not change with volume $327,600 General and administrative expenses $194,000 What is the break even point in units? 1) 81,900 be 2) 200,615 3) 130,400 4) 74,610 Question 38 (2 points) Use the following information to answer questions 36 - 40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable overhead per unit $1.40 Factory overhead that does not change with volume $327,600 General and administrative expenses $194,000 What will be the profit before taxes if sales are 250,000 units ? 1) 128,400 O2 2) 225,800 3) 478,400 4) 1,000,000 Question 39 (2 points) Use the following information to answer questions 36.40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable overhead per unit $1.40 Factory overhead that does not change with volume $327,600 General and administrative expenses $194,000 If a proposal will increase the fixed costs by 10% and lower the direct materials per unit by $.50 what would be the new breakeven point in dollars? 1) $1,354,711 2) $1,875,754 3) $1,573,213 4) $2,145,633 Question 40 (2 points) Use the following information to answer questions 36 -40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable overhead per unit $1.40 Factory overhead that does not change with volume $327,600 General and administrative expenses $194,000 Using the original contribution margin, a reduction in sales of 1000 units below break even point will result in a net profit before taxes of: 1) Negative 2,600 2) Negative 3,100 3) Exactly zero 4) Positive 2,600

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