Homework Help is Here – Start Your Trial Now!
Business
Finance
1) How many units must Gain Co. sell to break even? A) 60,000 B) 6.000 C) 9,000 D) 90,000 2) Gain Co's breakeven sales are: A) $5,400,000 B) $540,000 C) $360,000 D) $54,000 3) How many units must Gain Co. sell to earn $150,000 operating income? A) 12,750 B) 127,500

1) How many units must Gain Co. sell to break even? A) 60,000 B) 6.000 C) 9,000 D) 90,000 2) Gain Co's breakeven sales are: A) $5,400,000 B) $540,000 C) $360,000 D) $54,000 3) How many units must Gain Co. sell to earn $150,000 operating income? A) 12,750 B) 127,500

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

Y6

7) How would Gain Co's breakeven change if they reduced the selling price by $10? A) They would need 30,000 more units to reach breakeven B) They would need 300 more units to reach breakeven C) They would need 3,000 more units to reach breakeven D) They would need 3,000 fewer units to reach breakeven 8) Gain is considering a new process that would reduce the variable costs per unit by $5 by using increased automation, The additional machinery required would increase fixed costs by $22,500. Would you recommend making the change? A) No, breakeven would be 500 units higher B) No, adding to fixed costs is always inadvisable C) Yes, the breakeven would be reduced by 500 units D) Yes, the breakeven would be reduced by 1,000 units
Transcribed Image Text:7) How would Gain Co's breakeven change if they reduced the selling price by $10? A) They would need 30,000 more units to reach breakeven B) They would need 300 more units to reach breakeven C) They would need 3,000 more units to reach breakeven D) They would need 3,000 fewer units to reach breakeven 8) Gain is considering a new process that would reduce the variable costs per unit by $5 by using increased automation, The additional machinery required would increase fixed costs by $22,500. Would you recommend making the change? A) No, breakeven would be 500 units higher B) No, adding to fixed costs is always inadvisable C) Yes, the breakeven would be reduced by 500 units D) Yes, the breakeven would be reduced by 1,000 units
Use the following information for questions 1 through 8 Gain Co. makes a product that sells for $60 a unit. Variable costs to produce a unit are $20. Gain Co.'s fixed costs are $360,000. 1) How many units must Gain Co. sell to break even? A) 60,000 B) 6.000 C) 9,000 D) 90,000 2) Gain Co's breakeven sales are: A) $5,400,000 B) $540,000 C) $360,000 D) $54,000 3) How many units must Gain Co. sell to earn $150,000 operating income? A) 12,750 B) 127,500 C) 1,275 D) 2,500 4) How much operating income would Gain Co. earn if they sold 14,000 units? A) $150,000 loss B) $250,000 C) $2,000,000 loss D) $200,000 5) How much operating income would Gain Co. earn if they sold 7,500 units? A) $60,000 B) $50,000 loss C) $60,000 loss D) $600,000 6) How would Gain Co's breakeven change if they increased the selling price by $10? A) They would need 1,300 fewer units to reach breakeven B) They would need 1,800 fewer units to reach breakeven C) They would need 1,300 more units to reach breakeven D) They would need 1,200 more units to reach breakeven
Transcribed Image Text:Use the following information for questions 1 through 8 Gain Co. makes a product that sells for $60 a unit. Variable costs to produce a unit are $20. Gain Co.'s fixed costs are $360,000. 1) How many units must Gain Co. sell to break even? A) 60,000 B) 6.000 C) 9,000 D) 90,000 2) Gain Co's breakeven sales are: A) $5,400,000 B) $540,000 C) $360,000 D) $54,000 3) How many units must Gain Co. sell to earn $150,000 operating income? A) 12,750 B) 127,500 C) 1,275 D) 2,500 4) How much operating income would Gain Co. earn if they sold 14,000 units? A) $150,000 loss B) $250,000 C) $2,000,000 loss D) $200,000 5) How much operating income would Gain Co. earn if they sold 7,500 units? A) $60,000 B) $50,000 loss C) $60,000 loss D) $600,000 6) How would Gain Co's breakeven change if they increased the selling price by $10? A) They would need 1,300 fewer units to reach breakeven B) They would need 1,800 fewer units to reach breakeven C) They would need 1,300 more units to reach breakeven D) They would need 1,200 more units to reach breakeven
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS