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28. Salinas Corporation has a degree of operating leverage of 8. This means that a 1% change in sales dollars at Salinas will generate an 8% change in:A) variable expenses.B) fixed expenses.C) contribution margin.D) net operating income.Level: Medium LO: 8 Ans: D29. In calculating the break-even point for a multi-product company, which of the following assumptions are commonly made?30. The following information relates to the break-even point at Pezzo Corporation:If Pezzo wants to generate net operating income of $12,000, what will its sales dollars have to be?Brewer, Introduction to Managerial Accounting, 3/e29
Brewer, Introduction to Managerial Accounting, 3/e30
31. The following information relates to Snowbird Corporation:What is Snowbird’s margin of safety?32. The “Dog Hut” hot dog stand expects the following operating results for next year:What is Dog Hut’s break-even point next year in sales dollars?A) $120,000B) $181,300C) $196,000D) $250,000Level: Hard LO: 1,3,5 Ans: D33. The following information relates to Zinc Corporation for last year:Sales at Zinc are expected to be $600,000 next year. Assuming no change in cost structure, this means that net operating income for next year should be:Brewer, Introduction to Managerial Accounting, 3/e31
34. The following information pertains to Nova Co.’s cost-volume-profit relationships:How much will be contributed to net operating income by the 1,001st unit sold?35. Barnes Corporation expected to sell 150,000 games during the month of November. The following budgeted data are based on that level of sales:Barnes’ actual sales during November were 180,000 games. What should the actual net operating income during November have been?Source: CMA, adapted