QUESTION 20 The firms fixed costs are 60 000 variable cost p

QUESTION 20 The firm\'s fixed costs are $60 000, variable cost per unit is $15 and selling price per unit is $20. The contribution margin per ynit is: o $5 O $15 O $20 O $35 QUESTION 21 The concept of cost volume profit analysis is based on classifying costs as: O fixed and variable costs O variable product and period costs O product controllable and uncontrollable costs. O fixed and variable costs AND variable product and period costs. QUESTION 22 Wenstrom Corporation produces and sells a single product. Data concerning that product appear below $13000 $109,616 The break-even in monthly dollar sales is closest to: Selling price per unit Variable expense per unit. ..$41.60 Fixed expense per month $342,550

Solution

20) Contribution margin per unit = Sale per unit-variable cost per unit

= 20-15

Contribution margin per unit = 5

So answer is a) $5

21) The concept of cost volume profit analysis is based on classifying costs are fixed or variable cost

So answer is a) Fixed and variable cost

22) Break even point units = 109616/(130-41.60) = 1240 Units

Break even point sales = 1240*130 = $161200

So answer is $161200