Question 1

Kettle of Fish Hatcheries provides a stocked pond for fishing enthusiasts. They have fixed costs of $525,000, they charge $50 per person for pond access and the variable costs of stocking the pond average about $15 per person. How many people need to fish the pond annually to break even?

Accepted Answer

A)   45,000
B)   15,000
C)   32,000
D)   10,000E) B) and C)
F) A) and D)

Question 2

Another name for breakeven analysis is:

Accepted Answer

A)   cost-volume-profit analysis
B)   graphic analysis
C)   EBIT-EPS analysis
D)   degree of operating leverageE) A) and C)
F) All of the above

Question 3

The Foggy Futures Weather Network offers an annual almanac for sale each year with information about predicted weather patterns, severe storm safety tips and a tracking chart. The finished product sells for $35 with a variable cost per unit of $21. The company has operating costs of $1,050,000. Using 100,000 units as a base, what is the degree of operating leverage?

Accepted Answer

A)   6.2
B)   5.7
C)   7.9
D)   4.0E) A) and B)
F) A) and C)

Exam 26: Breakeven Analysis

Another name for breakeven analysis is:

Correct Answer
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Kettle of Fish Hatcheries provides a stocked pond for fishing enthusiasts. They have fixed costs of $525,000, they charge $50 per person for pond access and the variable costs of stocking the pond average about $15 per person. How many people need to fish the pond annually to break even?

Correct Answer
verified

Correct Answer
verified

Exam 26: Breakeven Analysis

Another name for breakeven analysis is:

Correct AnswerverifiedShow Answer

Kettle of Fish Hatcheries provides a stocked pond for fishing enthusiasts. They have fixed costs of $525,000, they charge $50 per person for pond access and the variable costs of stocking the pond average about $15 per person. How many people need to fish the pond annually to break even?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified