Blue Corp shows monthly fixed costs of £1,797 and per unit cost of £9.28 while selling 411 units in a single month. What is the minimum price Blue Corp must sell each unit to break-even?
£13.65
£13
£15
£15.65
A start up company spends £1,100 on their rent monthly. As well as £265 on utilities, £12.65 per unit of materials and assembly and £625 on labour. If their product sells for £29.99 per unit, how many units must they sell to break even?
109
111
113
115
Sam sells a product for £24.75 and fills orders averaging 37 units a day. His cost to produce and assemble each item is £3.11. If Sam is open for business five days a week, what is his contribution margin per unit?
£20.64
£21.64
£22.64
£23.64
The margin of safety is
The excess of actual sales revenue over actual variable expenses.
The excess of actual sales revenue over actual fixed expenses.
The excess of actual sales revenue over break even sales revenue.
The excess of actual sales revenue over total contribution margin.
To lower a company's break even point, managers should...
Increase the sales price of the product.
Decrease fixed expenses.
Decrease variable expenses.
Take any or all of these actions.
