Accounting_203_Chapter_6_Test

Accounting_203_Chapter_6_Test - ACCOUNTING 203 Chapter 6...

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ACCOUNTING 203 Chapter 6 Practice Test 1. The Menlove Co. had the following income statement for the most recent year: Sales (17,000 units)……………………………$357,000 Less: Variable expenses………………………. 225,000 Contribution margin …………………………. 102,000 Less: Fixed expenses………………………… 68,000 Net Income…………………………………… $34,000 Given this data, the unit contribution margin was: A) $2. B) $15. C) $6. D) $4. 2. The contribution margin ratio is 30% for the Honeyvine Company and the break-even point in sales is $150,000. If the company’s target net operating income is $60,000, sales would have to be: A) $200,000. B) $350,000. C) $250,000. D) $210,000. 3. Sweet Treat Company’s fixed expenses total $150,000, on its variable expense ratio is 60% and its variable expenses are $4.50 unit. Based on this information, the break-even point in units is: A) 50,000. B)
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This note was uploaded on 05/17/2011 for the course ACCT 203 taught by Professor Mac during the Spring '11 term at Chicago State.

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Accounting_203_Chapter_6_Test - ACCOUNTING 203 Chapter 6...

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