# 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&#39;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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