Question

# Metal Industries has monthly fixed costs totaling \$90,000 and variable costs of \$5 per unit. Each...

Metal Industries has monthly fixed costs totaling \$90,000 and variable costs of \$5 per unit. Each unit of product is sold for \$20.

Assume the company expects to sell 11,850 units of product this coming month. What is the margin of safety in units?

8,850

6,600

5,850

7,350

Tech Products, Inc. has monthly fixed costs totaling \$90,000 and variable costs of \$5 per unit. Each unit of product is sold for \$20.

How many units must be sold to earn a monthly profit of \$135,000?

15,000

6,000

6,750

9,000

Metal Industries has monthly fixed costs totaling \$90,000 and variable costs of \$5 per unit. Each unit of product is sold for \$20.

Assume the company expects to sell 11,850 units of product this coming month. What is the margin of safety in units?

8,850

6,600

5,850

7,350

Photos Inc. produces two different products with the following monthly data for June:

 Digital Camera Cameras Cases Total Selling price per unit \$300 \$100 Variable cost per unit \$240 \$ 60 Expected unit sales 28,000 7,000 35,000 Sales mix 80% 20% 100% Fixed costs \$350,000

Assume the sales mix remains the same at all levels of sales.

How many units in total must be sold to break even for the month?

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