ACCT 212 ACCOUNTING CONCEPTS QUESTIONS WITH VERIFIED ANSWERS LATEST 2024 (CHAPTER 2, CHAP 5, CHAPT 19 &20)

If unit sales prices are $7 and variable costs are $5 per unit how many units would have to be sold to break-even if fixed costs equal $8,000? A. 2,000 B. 3,000 C. 4,000 D. 3,800 - ANS-C. 4,000 The margin of safety is the excess of: A) Break-even sales over expected sales. B) Expected sales over variable costs. C) Expected sales over fixed costs. D) Fixed costs over expected sales. E) Expected sales over break-even sales. - ANS-E) Expected sales over break-even sales. A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000. The break-even point in units is: A) 5,158. B) 7,000. C) 8,167. D) 14,000. E) 19,600. - ANS-D) 14,000 Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income? A) $245,000 B) $207,500 C) $37,300 D) $170,000 E) $39,200 - ANS-A) $245,00