Question 1. Joe's Bagel Shop has total costs of $7,000 when 3,500 units are produced and $10,500 when 7,000 units are produced. What is the total fixed cost?
A. $7,000
B. $3,500
C. $10,500
D. $0
Question 2. Total costs at the Pisces Fish House were $75,800 when 30,000 units were produced and $95,800 when 40,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.
A. $80,115
B. $76,000
C. $79,800
D. $91,800
Question 3. Assume that Vega's Tamales has fixed costs of $128,325. Each unit generates variable costs of $0.42 and sells for $1.00. What is the break-even point?
A. 90,170 units
B. 221,250 units
C. 304, 536 units
D. 86,325 units
Question 4. Mike's Tires, Inc. sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is Mike's margin of safety?
A. $468,140
B. $124,025
C. $700,975
D. $405,000
Question 5. Eddie's had revenues of $360,000 when 60,000 units were sold. If fixed costs totaled $90,000 and variable costs totaled $210,000, what was the contribution margin per unit?
A. $6.00
B. $5.00
C. $2.50
D. $4.50