1. Sam’s Dull Diner has the contribution margin ratio of 16%.  If fixed costs are $176,800, determine the dollars of revenue Sam’s Diner should generate in order to reach break-even point?

A)   $282,880
B)   $1060,800
C)   $208,476
D)   $1,105,000

2. XYZ Company's monthly activity level ranged from the low of 17,000 units in May to high of 26,000 units in October.  Average production was 20,000 units per month.  Utilities cost was $8,250 in May and $10,500 in October.  Variable utility cost per unit, to the closest cent, is:

A)   $0.49.
B)   $0.47.
C)   $0.25.
D)   $0.40.

3. Company has the total cost of $50.00 per unit at volume of 100,000 units. Variable cost per unit is $20.00.  What will be the price if the company expected the volume of 120,000 units and used a mark up of 50%?

A)   $75.00
B)   $62.50
C)   There is not sufficient information in a problem to answer
D)   $67.50

4. At Lily’s corporation, the break-even point is 2,000 units.  If fixed costs total $300,000 and variable costs are $30 per unit, what will be the selling price per unit?

A)   $210
B)   $180
C)   $5
D)   $150