9. If the selling price is £20 per unit, variable costs are £5 per unit and fixed costs are £9,000, the BEP (Break-Even Point) in units is: A. 600 units B. 900 units C. £600 D. £900

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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9. If the selling price is £20 per unit, variable costs are £5 per unit and fixed costs are
£9,000, the BEP (Break-Even Point) in units is:
A. 600 units
B. 900 units
C. £600
D. £900
10. If the selling price is £20 per unit, variable costs are £5 per unit and fixed costs are
£9,000, the BEP (Break-Even Point) in sales value is:
A. £7,200
B. £9,000
C. £12,000
D. £18,000
11. A company needs 5,000 hours of labour for a contract they have been asked to
quote for. The work currently being carried out by our employees is generating a
contribution of £12 per hour, although there is currently a substantial amount of
idle time. Our workers are paid at the rate of £8 per hour.
What is the relevant cost of the labour required for the contract?
A. £ NIL
B. £60,000
C. £100,000
D. £40,000
Transcribed Image Text:9. If the selling price is £20 per unit, variable costs are £5 per unit and fixed costs are £9,000, the BEP (Break-Even Point) in units is: A. 600 units B. 900 units C. £600 D. £900 10. If the selling price is £20 per unit, variable costs are £5 per unit and fixed costs are £9,000, the BEP (Break-Even Point) in sales value is: A. £7,200 B. £9,000 C. £12,000 D. £18,000 11. A company needs 5,000 hours of labour for a contract they have been asked to quote for. The work currently being carried out by our employees is generating a contribution of £12 per hour, although there is currently a substantial amount of idle time. Our workers are paid at the rate of £8 per hour. What is the relevant cost of the labour required for the contract? A. £ NIL B. £60,000 C. £100,000 D. £40,000
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