/
/
/
51) ________ 100 percent minus total variable operating costs as
Not my Question
Flag Content

# Question : 51) ________ 100 percent minus total variable operating costs as : 1415205

51) ________ is 100 percent minus total variable operating costs as a percentage of total sales.

A) Profit margin

B) Contribution margin

C) Expense ratio

D) Fixed coverage ratio

52) A firm has fixed operating costs of \$10,000, the sale price per unit of its product is \$25, and its variable cost per unit is \$15. The firm's operating breakeven point in units is ________ and its breakeven point in dollars is ________.

A) 1,000; \$6,250

B) 400; \$10,000

C) 400; \$25,000

D) 1,000; \$25,000

53) A firm has fixed operating costs of \$150,000, total sales of \$1,500,000, and total variable costs of \$1,275,000. The firm's operating breakeven point in dollars is ________.

A) \$150,000

B) \$176,471

C) \$1,000,000

D) \$1,425,000

54) A firm has fixed operating costs of \$253,750, a sales price per unit of \$100, and a variable cost per unit of \$65. The firm's operating breakeven point in dollars is ________.

A) \$725,000

B) \$700,000

C) \$906,250

D) \$390,385

55) One function of breakeven analysis is to ________.

A) determine the profit attributable to each stockholder

B) evaluate the effect of leverage on a firm's risks and returns

C) evaluate the profitability of various sales levels

D) determine the amount of financing needed by the firm

56) The preferred approach to breakeven analysis for a multiproduct firm is the ________.

A) breakeven point expressed in units

B) breakeven point expressed in dollars

C) cash breakeven point

D) overall breakeven point

57) A firm has fixed operating costs of \$25,000, a per unit sales price of \$5, and a variable cost per unit of \$3. What is its operating breakeven point if it targets net operating income of \$10,000?

A) 12,500 units

B) 15,000 units

C) 17,500 units

D) 25,000 units

58) Tony's Beach T-Shirts has fixed annual operating costs of \$75,000. Tony retails his T-shirts for \$14.99 each and the variable cost per T-shirt is \$4.99. Based on this information, the breakeven sales level in dollars is ________.

A) \$125,495

B) \$112,425

C) \$108,995

D) \$110,495

59) Tony's Beach T-Shirts has fixed annual operating costs of \$75,000. Tony retails his T-shirts for \$14.99 each and the variable cost per T-shirt is \$4.99. Based on this information, the breakeven sales level in units is ________.

A) 7,500

B) 15,030

C) 5,003

D) 3,754

60) Mark must buy four new tires for his car. He is considering buying tires that are \$25 a piece more than his regular brand, because the higher priced tires are supposed to increase his miles per gallon by 20%. If the tires are good for 48,000 miles and Mark drives an average of 1,000 miles per month, gas costs \$2.50 per gallon over the next 4 years, and Mark's car gets 30 miles to the gallon now (on the old tires), should Mark purchase the more expensive tires?

A) Yes, because Mark will save about \$660 dollars in gas over the four years but the new tires will only be \$100 more.

B) Yes, because Mark will save about \$560 dollars in gas over the four years but the new tires will only be \$100 more.

C) No, because Mark will only save about \$60 dollars in gas over the four years but the new tires will only be \$100 more.

D) No, because Mark will only save about \$90 dollars in gas over the four years but the new tires will only be \$100 more.

## Solution 5 (1 Ratings )

Solved
Finance 1 Year Ago 53 Views