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Q1.Minden Company manufactures a high-quality wooden birdhouse
that sells for $30 per unit. Variable costs are $6 per unit
and fixed costs total $180,000. During 2018, Minden Company
sold 50,000 birdhouses to customers. The president of Minden
Company believes the following changes should be made in 2019:
1. the selling price of the birdhouse should be increased
by 20%
2. increase advertising by $30,000

Assume these changes are made. Calculate the number of units
Minden Company must sell in 2019 in order to break-even.

Q2. Minden Company manufactures a high-quality wooden birdhouse
that sells for $30 per unit. Variable costs are $6 per unit
and fixed costs total $180,000. During 2018, Minden Company
sold 50,000 birdhouses to customers. The president of Minden
Company believes the following changes should be made in 2019:
1. the selling price of the birdhouse should be increased
by 20%
2. increase advertising by $30,000

Assume these changes are made. Calculate the number of units
Minden Company must sell in 2019 in order to earn a target
profit equal to 25% of sales.

Q3. Minden Company manufactures a high-quality wooden birdhouse
that sells for $30 per unit. Variable costs are $6 per unit
and fixed costs total $180,000. During 2018, Minden Company
sold 50,000 birdhouses to customers. The president of Minden
Company believes the following changes should be made in 2019:
1. the selling price of the birdhouse should be increased
by 20%
2. increase advertising by $30,000

Assume these changes are made. Calculate the number of units
Minden Company must sell in 2019 in order to earn a net
income that is 80% greater than the net income earned in 2018.

Q4. The following information relates to ABC Company’s utilities

cost and activity for the first six months of 2021:

Month          Utilities Costs      Units Produced

January            $17,200              6,200

February            14,500              5,300

March               18,600              7,100

April               13,700              4,800

May                 15,900              5,900

June                12,800              4,600

ABC Company expects to produce 5,600 units during July.

Using the high-low method, calculate ABC Company’s expected

utilities cost for July.

Q5. ABC Company produces and sells four products. Information about these products
for 2019, the most recent year, appears below:

                                          Product A       Product B      Product C      Product D
selling price per unit                 19.00               16.00              15.00            12.00
variable costs per unit               5.00               13.00               5.00              6.00
number of units sold               39,000           32,000           15,000          28,000

ABC Company had total fixed costs of $648,000 in 2019.

Calculate the number of units of Product D that needed to be sold in 2019 in order
for ABC Company to earn a profit of $144,000.

Q6. ABC Company produces and sells four products. Information about these products
for 2019, the most recent year, appears below:

                                            Product A       Product B      Product C      Product D
selling price per unit                 19.00               16.00              15.00            12.00
variable costs per unit               5.00               13.00               5.00              6.00
number of units sold               39,000           32,000           15,000          28,000

ABC Company had total fixed costs of $648,000 in 2019.

Calculate the margin of safety reported by ABC Company for 2019.