Additional practice for midterm

Additional Practice for Midterm
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Unformatted text preview: 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. 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. ...
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