# Additional Practice for Midterm - 1 award 10.00 points...

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1. award: 10.00 points James Company has a margin of safety percentage of 20% based on its actual sales. The break-even point is \$220,000 and the variable expenses are 45% of sales. Given this information, the actual profit is: (Do not round intermediate calculations.) \$24,200 \$30,250 \$19,800 \$25,000 2. award: 10.00 points A company has provided the following data: Sales 2,900 units Sales price \$ 87 per unit Variable cost \$67 per unit Fixed cost \$25,000 If the sales volume decreases by 20%, the variable cost per unit increases by 10%, and all other factors remain the same, net operating income will: (Do not round intermediate calculations.) increase by \$21,396. decrease by \$5,856. decrease by \$17,000. decrease by \$27,144. 3. award: 10.00 points The following information relates to Clyde Corporation which produced and sold 37,000 units last month. Sales \$555,000 Manufacturing costs: Fixed \$210,000 Variable \$100,600 Selling and administrative: Fixed \$300,000 Variable \$ 43,700 There were no beginning or ending inventories. Production and sales next month are expected to be 27,000 units.

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The company's unit contribution margin next month should be: (Round your intermediate calculations and final answer to 2 decimal places) \$8.38 \$3.30 \$11.10 \$14.61 4. award: 10.00 points The contribution margin ratio is 25% for Grain Company and the break-even point in sales is \$201,200. To obtain a target net operating income of \$63,000, sales would have to be: (Do not round intermediate calculations.) \$453,200 \$264,200 \$283,000 \$238,800 5. award: 10.00 points Rothe Company manufactures and sells a single product that it sells for \$100 per unit and has a contribution margin ratio of 30%. The company's fixed expenses are \$47,600. If Rothe desires a monthly target net operating income equal to 10% of sales, the amount of sales in units will have to be: (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) 2,380 units 820 units 3,247 units 1,266 units 6. award: 10.00 points South Company sells a single product for \$28 per unit. If variable expenses are 55% of sales and fixed expenses total \$14,400, the break-even point in sales dollars will be: (Do not round intermediate calculations.) \$32,000 \$17,600 \$14,400 \$26,182
7. award: 10.00 points Darth Company sells three products. Sales and contribution margin ratios for the three products follow: Product X Product Y Product Z Sales in dollars \$29,000 \$49,000 \$109,000 Contribution margin ratio 43% 38% 13% Given these data, the contribution margin ratio for the company as a whole would be: (Round your intermediate calculations to 2 decimal places. Round your answer to whole percentage.) 24% 41% 31% it is impossible to determine from the data given. 8.

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## This note was uploaded on 10/01/2013 for the course BUAD 281 taught by Professor Maber during the Fall '12 term at USC.

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Additional Practice for Midterm - 1 award 10.00 points...

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