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 breakeven 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 breakeven point in units for a year will:
A) increase.
B) stay the same.
C) decrease.
D) be undeterminable.
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