ejl herbal remedies sells several products for an average price of 17 per unit avera 4312142

ejl herbal remedies sells several products for an average price of 17 per unit avera 4312142

EJL Herbal Remedies sells several products for an average price of $17 per unit. Average variable costs per unit are as follows:

Direct material

$5.00

Direct labor

$1.00

Indirect manufacturing costs

$0.50

Selling commissions

$3.00

EJL's annual fixed costs total $82,500.

18) The contribution margin per unit is:

A) $7.50.

B) $10.50.

C) $12.

D) $14.

19) The number of units that EJL must sell each year to break even is:

A) 4,853 units.

B) 7,857 units.

C) 11,000 units.

D) 13,000 units.

20) The number of units that EJL must sell annually to make a profit of $75,000 is:

A) 7,500 units.

B) 18,000 units.

C) 21,000 units.

D) 30,000 units.

The following annual information is for Bressler Corporation:

Product X

Product Y

Revenue per unit:

$10.00

$15.00

Variable cost per unit:

$ 2.50

$ 5.00

Total fixed costs: $100,000

21) If the sales mix consists of two units of Product X and one unit of Product Y, what is the weighted revenue per unit of composite product?

A) $10.00

B) $11.66

C) $13.33

D) $15.00

22) If the sales mix consists of two units of Product X and one unit of Product Y, what is the break-even point in units for a year?

A) 2,000 units of Y and 4,000 units of X

B) 2,025 units of Y and 4,050 units of X

C) 4,025 units of Y and 8,050 units of X

D) 4,000 units of Y and 8,000 units of X

23) What is the operating income for a year, assuming actual sales total 150,000 units, and the sales mix is two units of Product X and one unit of Product Y?

A) $1,200,000

B) $1,250,000

C) $1,750,000

D) None of the above is correct.

24) If the sales mix shifts to one unit of Product X and two units of Product Y, then the contribution margin per unit of composite product will:

A) increase per unit.

B) stay the same.

C) decrease per unit.

D) be undeterminable.

25) If the sales mix shifts to one unit of Product X and two units of Product Y, then the break-even point in units for a year will:

A) increase.

B) stay the same.

C) decrease.

D) be undeterminable.

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