Sales in units per year................................ 7,000
Variable production cost............................ $5.00 per unit
Variable selling expense............................ $2.00 per unit
Variable administrative expense................ $1.50 per unit
Fixed expenses per year:
Building rent........................................... $10,000
Equipment depreciation.......................... 4,000
Selling expense....................................... 8,000
Administrative expense.......................... 15,000
Total fixed expenses.................................. $37,000
112. The contribution margin ratio is (round to nearest tenth of a percent): A) 56.7% B) 43.3% C) 66.7% D) 53.3%
113. If the selling price is increased by 10 percent, what will be the new break-even point in units (round to the nearest unit)? A) 3,895 units B) 4,625 units C) 3,700 units D) 3,217 units
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