# Variable Cost, Break-Even, Net Income, Inventory Calculations

1. During 2005, the Latrex Corporation had cash and credit sales of \$47,000 and \$45,500 respectively. The company also collected accounts receivable of \$26,700 and incurred expenses of \$68,500, 80 percent of which were paid during the year. In addition, Latrex paid \$24,000 for a 12-month building rental, beginning on July 1, 2005. What was Latrex's accrual-basis net income (loss) for 2005?

2. If a firm's beginning inventory is \$70,000, goods purchased during the period cost \$260,000, and the cost of goods sold is \$300,000, what is the ending inventory?

3. During the year, Samson Company earned revenues of \$228,000 and incurred \$196,000 for various operating expenses. There are 2,500 shares of stock outstanding. What is Earnings per share?

4. Goliath Company had the following account balances: Sales Revenue, \$150,000; Sales Returns and Allowances, \$3,000; Sales Discounts, \$3,600; and Bad Debts, \$600. Given these balances, what is the amount of net sales?

5. If variable costs are \$20 per unit, revenues are \$40 per unit, and fixed costs are \$10,000, what is the break-even point in units?

6. During June, Bezold Corporation produced 12,000 units and sold them for \$20 per unit. Total fixed costs for the period were \$154,000, and the operating profit was \$26,000.What was the variable cost per unit in June?

7. If demand is 10,000 units, cost of carry is \$2 per unit, and cost of placing an order is \$100, what is the EOQ?

8. What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of \$750 per order, and a carrying cost of \$300 per automobile?