ke Test BB quiz two Test Information Description Multiple At

ke Test: BB quiz two Test Information Description Multiple Attempts This test allows multiple attempts. Force Completion This test can be saved and resumed later. s Question Completion Status: Close Window a, Movirig to another question will save this response. Question 7 of 15 Question 7 1 points Save Answer Your Company\'s single product has a selling price of $25 per unit and contribution margin of $10. Last year the company reported a profit of $20,000 and variable expenses totaling $180,000. How many units did the company sell last year? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS Question 7 of 15 Moving to another question win save this response. Close Window 6 7 8 9 0

Solution

Contribution per unit

= Selling price per unit – Variable costs per unit

So, $10 = $25 – Variable costs per unit

So, Variable costs per unit = $25 - $10

= $15 per unit

Now, Total variable expenses were $180,000

Total variable expenses = Number of units produced x Variable cost per unit

So, $180,000 = Number of units produced x $15

So, Number of units produced = $180,000 / $15

= 12,000 units

Assuming production and sales were equal and there were no closing stock, production is equal to sales

So, Sales last year = 12,000 units