3.03 Pricing Strategies Part 2 Question Preview (ID: 25704)


3.03 Pricing Strategies Part 2. TEACHERS: click here for quick copy question ID numbers.

The formula for calculating break-even for a product is
a) BP=SVC/VCM
b) BP =FC / VCM
c) Cost=Sales-Revenues
d) Cost=BP/Sales

Formula for calculating the variable cost per unit
a) BP=FC/VCM
b) #of units =break even
c) variable cost/# of unit
d) variable cost - break even

Formula to find the variable cost margin
a) selling price per unit - variable cost per unit
b) total cost / cost per unit
c) total sales + fixed cost
d) Selling price per unit - the discount price

The variable cost for a product is $3.00 and the total fixed costs are $288,000. The company sells the products for $6.00 each. How many products will the company have to sell to break even?
a) 4,800
b) 32,000
c) 48,000
d) 96,000

Determine a firm's break-even point in units, given the following information: total fixed cost, $4,000; variable cost per unit, $20; and selling price per unit, $100.
a) 50 units
b) 80 units
c) 100 units
d) 500 units

A soccer camp provides five leaders at $8 per hour for eight hours a day for five days. If fringe benefits are 20% of the wages and supplies total $650, calculate the cost per person if 40 players attend.
a) $64.25
b) $48.00
c) $56.25
d) $32.25

A business purchases a line of items for resale that cost $12.32 each. Expenses total $1.65 per item. What is the break-even price per item?
a) $14.71
b) $14.26
c) $13.97
d) $14.92

A business decides to produce 6,000 football cushions and sell them for $6.00 each. They cost the company $4.00 each to produce. How many cushions must the company sell to break even?
a) 4,000
b) 3,000
c) 600
d) 6,000

Given the following information, calculate the break-even point in dollars: Total fixed costs = $20,000; Unit selling price = $100; Unit variable cost = $60.
a) 55000
b) 50000
c) 500
d) 5000

A product's selling price is $430 per unit, and the number of units required to reach the break-even point is 2,100. Calculate the total dollar sales the business needs to break even.
a) $890,000
b) $4.88 per unit
c) $903,000
d) $.21 per unit

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