Mishoe Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units)$50,000Variable expenses 32,500Contribution margin 17,500Fixed expenses 12,250Net operating income$5,250The break-even point in unit sales is closest to: (Round your intermediate calculations to 2 decimal places.)
A. 700 units
B. 650 units
C. 0 units
D. 895 units
Answer: A
You might also like to view...
How should Focus company record expenditures for research and development costs according to US. GAAP?
a. expense as incurred b. capitalize and depreciate c. amortize them over 60 months d. none of the above
It is alleged that markets fail, in some situations, to insure a fair price and thereby limit consumers' freedom. Which statement does not support that allegation?
A. Monopolistic pricing limits the variety of products available to consumers. B. The more uniformity of prices one finds within an industry, the less likely it is that competition exists. C. From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue. D. Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.
Which of the following is TRUE of posting from a sales journal to the general ledger?
A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. C) Even though the sales journal is posted monthly to the subsidiary ledger, it is a reliable record of the amount received from each customer. D) Under a perpetual inventory system, the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.
What is a corporate chain?
A. businesses in which a supplier grants a dealer the right to sell products for a fee B. wholesale sponsored groups of independent retailers that band together C. an independent retail operation that employs 50 or more people D. a group of independent retailers that band together to set up a jointly owned, central wholesale operation E. two or more retail outlets that are commonly owned and controlled