# 1 In preparing to solve a break-even exercise, the suggested formula to begin with is as follows: a 1 In preparing to solve a break-even exercise, the suggested formula to begin with is as follows:

a Total Revenues = Total Costs

b Price x Volume = Total Costs

c Price x Volume = Fixed Costs + Variable Costs

d Price x Volume = Fixed Costs + (Variable Cost / Unit x Volume)

2 Given the below, determine the break-even price, given quantity, total fixed cost, and variable cost per unit

Price Quantity Total Fixed Cost Variable Cost / Unit

? 3,750 \$212,000 \$22

a \$85

b \$79

c \$82

d \$65

3 Given the below, find the break-even quantity, given price, total fixed cost, and variable cost per unit

Price Quantity Total Fixed Cost Variable Cost per Unit

\$75 ? \$212,000 \$22

a 3,500

b 4,000

c 4,500

d 5,000

4Given the below, calculate the break-even total fixed cost, given price, quantity, and variable cost per unit

Price Quantity Total Fixed Cost Variable Cost per Unit

\$75 3,750 ? \$22

a \$200,000

b \$220,000

c \$198,750

d \$210,000

5 Given the below, determine the break-even variable cost per unit, given price, quantity, and total fixed cost

Price Quantity Total Fixed Cost Variable Cost per Unit

\$75 3,750 \$212,000 ?

a \$79

b \$22

c \$12

d \$18

6 Budget variances are:

a A result of positive revenues

b The difference between what was budgeted and what actually occurred

c A budget that accommodates a range of activities

d A tangible asset pledged to repay a loan

7 A full-time technician working in the local Walk-In Clinic is paid \$62,000 per year (52 weeks) and works 400 hours per week over 5 days The fringe benefit rate is 31 percent The technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days Assume all time off is taken

What is the total hourly rate of pay?

a \$2875

b \$2981

c \$2900

d \$3270

8 A full-time technician working in the local Walk-In Clinic is paid \$62,000 per year (52 weeks) and works 400 hours per week over 5 days The fringe benefit rate is 31 percent A technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days Assume all holidays are taken

What is the worked hourly rate of pay?

a \$2981

b \$2900

c \$3270

d \$2500

9 A full-time technician working in the local Walk-In Clinic is paid \$62,000 per year (52 weeks) and works 400 hours per week over 5 days The fringe benefit rate is 31 percent In 2011, a technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days

What is the fully “burdened” hourly rate of pay (ie the total cost per hour actually worked)?

a \$4500

b \$2981

c \$4284

d \$3270

10 A full-time technician working in the local Walk-In Clinic is paid \$62,000 per year (52 weeks) and works 400 hours per week over 5 days The fringe benefit rate is 31 percent In 2011, a technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days

How many full-time equivalent (FTE) technicians are required to staff the local Walk-In Clinic, 8 am to 7 pm on weekdays, and 9 am to 1 pm on Saturdays? Assume that two technicians must always be on duty during the clinic’s hours of operation

a 31435

b 15717

c 25255

d 35755

12 LGH, a non-taxpaying entity, is planning to purchase imaging equipment, including an MRI and ultrasonograms for its new imagining center The equipment will generate \$2,500,000 per year in revenues for the next five years The expected operating expenses, excluding \$800,000 in depreciation, will increase expenses by \$950,000 per year for the next five years The initial capital investment outlay for the imaging equipment is \$4,500,000 The salvage value at year five is \$500,000 The cost of capital is 9% Compute the NPV

The answers are presented in \$000’s

a \$1,854

b \$4,500

c \$6,354

d None of the above

13 LGH, a non-taxpaying entity, is planning to purchase imaging equipment, including an MRI and ultrasonograms for its new imagining center The equipment will generate \$2,500,000 per year in revenues for the next five years The expected operating expenses, excluding \$800,000 in depreciation, will increase expenses by \$950,000 per year for the next five years The initial capital investment outlay for the imaging equipment is \$4,500,000 The salvage value at year five is \$500,000 The cost of capital is 9% Calculate the IRR

Select the closet answer

a 182%

b 213%

c 232%

d 254%