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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 breakeven 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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View Full DocumentThe 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 breakeven 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 breakeven 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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 Fall '12
 Maber
 Contribution Margin, Sales

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