# 1. Gibbs Company has a contribution margin of \$300,000 and a contribution margin ratio of 30%. How m

1. Gibbs Company has a contribution margin of \$300,000 and a contribution margin ratio of 30%. How much are total variable costs?

a. \$90,000

b. \$700,000

c. \$210,000

d. \$1,000,000

2.. Hess, Inc. sells a product with a contribution margin of \$12 per unit, fixed costs of \$148,800, and sales for the current year of \$200,000. How much is Hess s break-even point?

a. 9,200 units

b. \$51,200

c. 12,400 units

d. 4,267 units

3. Sutton Company produces flash drives for computers, which it sells for \$20 each. The variable cost to make each flash drive is \$13. During April, 700 drives were sold. Fixed costs for April were \$2 per unit for a total of \$1,400 for the month. How much is the monthly break-even level of sales in dollars for Sutton Company?

a. \$200

b. \$4,000

c. \$14,000

d. \$8,400

4. The direct materials budget shows:

Desired ending direct materials 72,000 pounds

Total materials required 108,000 pounds

Direct materials purchases 94,800 pounds

The total direct materials needed for production is

a. 36,000 pounds.

b. 13,200 pounds.

c. 22,800 pounds.

d. 202,800 pounds. 