1) ABC Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $160. Q- Drive Plus has a unit variable cost of $85 and a selling price of $225. The weighted-average unit contribution margin for ABC is A. $110. B. $80. C. $160. D. $70. 2) Sales mix is A. the trend of sales over recent periods. B. a measure of leverage used by the company. C. the relative percentage in which a company sells its multiple products. D. the mix of variable and fixed expenses in relation to sales. 3) MMM Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for MMM are 70,000 Standard and 90,000 Supreme. Fixed expenses are $1,800,000. How many Standards would MMM sell at the break-even point? A. 60,000. B. 33,750. C. 70,000. D. 26,250. 4) Swifty Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q- Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $90 and a selling price of $180. Q-Drive Plus has a unit variable cost of $115 and a unit selling price of $200. Swifty's fixed costs are $607,500. How many units of Q-Drive would be sold at the break-even point? A. 2,107 B. 4,916 C. 7,023 D. 2,025 5) Bonita Industries has two divisions: Sporting Goods and Sports Gear. The sales mix is 60% for Sporting Goods and 40% for Sports Gear, as determined by total sales dollars. Bonita incurs $5120000 in fixed costs. The contribution margin ratio for Sporting Goods is 20%, while for Sports Gear it is 70%. The break-even point in dollars is A. $1,945,600. B. $12,800,000. C. $10,240,000. D. $5,120,000.

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Chapter7: Cost-volume-profit Analysis
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1) ABC Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive
Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $160. Q-
Drive Plus has a unit variable cost of $85 and a selling price of $225. The weighted-average unit contribution
margin for ABC is
A. $110.
B. $80.
C. $160.
D. $70.
2) Sales mix is
A. the trend of sales over recent periods.
B. a measure of leverage used by the company.
C. the relative percentage in which a company sells its multiple products.
D. the mix of variable and fixed expenses in relation to sales.
3) MMM Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and
Supreme. Expected sales for MMM are 70,000 Standard and 90,000 Supreme. Fixed expenses are $1,800,000.
How many Standards would MMM sell at the break-even point?
A. 60,000.
B. 33,750.
C. 70,000.
D. 26,250.
4) Swifty Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-
Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $90 and a selling price of $180.
Q-Drive Plus has a unit variable cost of $115 and a unit selling price of $200. Swifty's fixed costs are $607,500.
How many units of Q-Drive would be sold at the break-even point?
A. 2,107
B. 4,916
C. 7,023
D. 2,025
5) Bonita Industries has two divisions: Sporting Goods and Sports Gear. The sales mix is 60% for Sporting Goods
and 40% for Sports Gear, as determined by total sales dollars. Bonita incurs $5120000 in fixed costs. The
contribution margin ratio for Sporting Goods is 20%, while for Sports Gear it is 70%. The break-even point in
dollars is
A. $1,945,600.
B. $12,800,000.
C. $10,240,000.
D. $5,120,000.
Transcribed Image Text:1) ABC Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $160. Q- Drive Plus has a unit variable cost of $85 and a selling price of $225. The weighted-average unit contribution margin for ABC is A. $110. B. $80. C. $160. D. $70. 2) Sales mix is A. the trend of sales over recent periods. B. a measure of leverage used by the company. C. the relative percentage in which a company sells its multiple products. D. the mix of variable and fixed expenses in relation to sales. 3) MMM Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for MMM are 70,000 Standard and 90,000 Supreme. Fixed expenses are $1,800,000. How many Standards would MMM sell at the break-even point? A. 60,000. B. 33,750. C. 70,000. D. 26,250. 4) Swifty Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q- Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $90 and a selling price of $180. Q-Drive Plus has a unit variable cost of $115 and a unit selling price of $200. Swifty's fixed costs are $607,500. How many units of Q-Drive would be sold at the break-even point? A. 2,107 B. 4,916 C. 7,023 D. 2,025 5) Bonita Industries has two divisions: Sporting Goods and Sports Gear. The sales mix is 60% for Sporting Goods and 40% for Sports Gear, as determined by total sales dollars. Bonita incurs $5120000 in fixed costs. The contribution margin ratio for Sporting Goods is 20%, while for Sports Gear it is 70%. The break-even point in dollars is A. $1,945,600. B. $12,800,000. C. $10,240,000. D. $5,120,000.
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