# 153 scott incorporated has been in business for several months because of increased 4308051

153) Scott Incorporated has been in business for several months. Because of increased competition in the region for part adapters, the managers at Scott Incorporated is considering cutting sales price from $32 per adapter to $28 per adapter.

New sales price per poster$28

Variable price per adapter$21

New contribution margin per adapter$7

If the variable expenses remain at $21 per adapter and the fixed expenses remain at $6,500, how many adapters will the managers need to sell to break even? Compute the breakeven sales in units.

A) 902 units

B) 908 units

C) 928 units

D) 982 units

154) Boss Enterprises currently sells its products for $40 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $120,000 per year.

What is the breakeven point in units at the current selling price?

A) 5,000 units

B) 2,143 units

C) 24 units

D) 7,500 units

155) Beasley Company currently sells its products for $35 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 50% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year). Fixed expenses are $79,625 per year.

What is the breakeven point in units at the anticipated selling price per unit next year?

A) 1,338 units

B) 3,250 units

C) 3,520 units

D) 7,583 units

156) Grosheim Incorporated has fixed expenses of $212,500 per year. Right now, Grosheim Incorporated is selling its products for $125 per unit. Management is contemplating a 25% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year).

If fixed costs increase 10% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven?

A) 1,133 units

B) 2,877 units

C) 233,750 units

D) 2,200 units

157) Management at the Forrest Company currently sells its products for $225 per unit and is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 25% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit). Fixed expenses are $120,750 per year.

If fixed costs were to decrease 10% during the current year and the new selling price goes into effect, how many units will need to be sold to breakeven?

A) 420 units

B) 358 units

C) 908 units

D) 132,825 units

158) Mae Company sells its product for $12 per unit and has variable costs of $8 per unit. Total fixed costs are $60,000. Suppose variable costs increase by 10% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units?

A) Increase from 15,000 units to 18,750 units

B) Decrease from 3,000 units to 2,885 units

C) Decrease from 15,000 units to 5,357 units

D) Decrease from 7,500 units to 6,818 units

159) If fixed expenses are $45,000, the breakeven in sales dollars is $60,000 and the selling price per unit is $100, then the variable expense per unit is

A) approximately $75.

B) approximately $175.

C) approximately $33.33.

D) approximately $25.

160) Franklin Producers sells its core product for $8 per unit and has variable costs of $6 per unit. Total fixed costs are $28,000. Suppose variable costs increase by 20% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units?

A) Decrease from 2,000 units to 1,842 units

B) Decrease from 14,000 units to 4,118 units

C) Increase from 14,000 units to 35,000 units

D) Decrease from 4,667 units to 3,889 units

161) Fixed expenses total $31,000, the breakeven sales in dollars is $93,000 and the selling price per unit is $99. The variable expense per unit is

A) approximately $33.

B) approximately $66.

C) approximately $132.

D) approximately $198.

Total fixed expenses$550,000

Selling price per unit$25

Variable expenses per unit$15

If Cartman Enterprises can reduce fixed expenses by $16,000, how will breakeven sales in units be affected?

A) Increase by 400 units

B) Increase by 1,600 units

C) Decrease by 400 units

D) Decrease by 1,600 units