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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Accounting_203_Chapter_6_Test - ACCOUNTING 203 Chapter 6...

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