1) Which of the following is an example of a fixed cost?a) Equipment cost b) Power costc) Labor costd) Material cost2) Which of the following is an example of a variable cost?a) Building costb) Equipment costc) Labor costd) Property taxes3) Given a facility with a total fixed cost of $420 variable cost per unit of $20 and a selling price per unit of $30 which of the following is the profit at a forecasted production level ofa. $80b. $500c. $580d. $4204) Engler Corporation manufactures specialized blades. Last year the company manufactured and sold 30000 blades. This year it is planning on manufacturing 35000 blades without adding new machinery and equipment (i.e. fixed costs). Its total estimated cost for the30000 units it made last year are as follows:Direct Material (variable) $250000Direct labor (variable) $375000Manufacturing OverheadVariable portion $90000Fixed portion $75000Selling and AdministrativeVariable portion $45000Fixed portion $55000What is the break-even price for the blades?a) $29.67b) $29.04c) $25.83d) $25.17
