Please help with multiple choice questions. 4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and theselling price is $10, what will be the number of units required to maintain a profitof $20 000?а.18 714 unitsb.20 714 unitsС.27 714 unitsd.25 714 units5. What is the value of the total cost?A company makes a single product with a total capacity of 400 000 litres per annum.Cost and sales data are as follows:Selling priceMarginal costFixed costs$1 per litre$0.50 per litre$100 000a.$250 000b.$287 000C.$185 000d.$88 900

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4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the selling price is $10, what will be the number of units required to maintain a profit of $20 000? a. 18 714 units b. 20 714 units С. 27 714 units d. 25 714 units

4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the selling price is $10, what will be the number of units required to maintain a profit of $20 000? a. 18 714 units b. 20 714 units С. 27 714 units d. 25 714 units

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

Please help with multiple choice questions.

4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the
selling price is $10, what will be the number of units required to maintain a profit
of $20 000?
а.
18 714 units
b.
20 714 units
С.
27 714 units
d.
25 714 units
5. What is the value of the total cost?
A company makes a single product with a total capacity of 400 000 litres per annum.
Cost and sales data are as follows:
Selling price
Marginal cost
Fixed costs
$1 per litre
$0.50 per litre
$100 000
a.
$250 000
b.
$287 000
C.
$185 000
d.
$88 900

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