# ACCT 212 Learnsmart Assignment 5 Liberty University Solution

RST Company produces a product that has a variable cost of \$6 per unit. The company's fixed costs are \$30,000. The product sells for \$10 per unit. How many units must be produced to break-even?

A company has sales of \$125,000, variable costs of \$45,000 and fixed costs of \$30,000. The contribution margin ratio is _____%.

A company incurs \$12,000 in direct labor costs when they produce 480 units and \$12,500 in direct labor costs when they produce 500 units. The direct labor costs per unit is \$_____.

A company has pre-tax income of \$125,000 and an income tax rate of 35%. The after-tax income is ____.

A manufacturing company incurs rent costs of \$12,500 per month. The company manufactured 250,000 units in May and 300,000 units in June. The cost per unit in May and June, respectively, is:

RST Company produces a product that has a variable cost of \$6 per unit. The company's fixed costs are \$30,000. The product sells for \$10 per unit. RST earn a profit of \$20,000. The margin of safety is \$______.

A company has fixed costs of \$50,000 while manufacturing a product that has variable costs of \$4 per unit and sells for \$14 per unit. The break-even point is units.

Conventional CVP analysis requires management to classify all costs as either _____ or ____ with respect to production or sales volume.

A company has sales of \$125,000, variable costs of \$45,000 and fixed costs of \$30,000. The break-even point in sales dollars is __________.

RST Company produces a product that has a variable cost of \$6 per unit. The company's fixed costs are \$30,000. The product sells for \$10 per unit. RST desires to earn a profit of \$20,000. The contribution margin ratio is %.

The ACC Tutoring Service provides tutoring to accounting students. The volume of tutoring is low at the beginning of the semester and increases before exams. ACC had its highest level of service in May when they provided 4,300 hours of tutoring at a total cost of \$125,000 and its lowest level of service in January when they provided 1,500 hours of tutoring at a total cost of \$55,000. Using the high-low method, the estimated variable cost per hour is \$__.

On a CVP chart, on either side of the break-even point, the vertical distance between the total sales line and the total cost line represents:

A company produces a product with variable costs of \$2.50 per unit. The product sells for \$5.00 per unit. The company has fixed costs of \$3,000 and desires a profit of \$10,000. The sales level in dollars to achieve the desired profit is ____.

A company sells 800 units at \$16 each, has variable costs of \$12 per unit, fixed costs of \$1,200, and a 40% tax rate. The pre-tax income is ___.

The ABC Company had its highest level of production in May when they produced 4,000 units at a total cost of \$110,000 and its lowest level of production in November when they produced 2,500 units at a total cost of \$87,500. Using the high-low method, the estimated fixed costs are ______

LMN Company produces a product that sells for \$1. The company has production costs of \$600,000, half of which are fixed costs. Assuming production and sales of 750,000 units, the contribution margin per unit is __________.