Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?
Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000?

32%If sales are $820,000, variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio?
A firm operated at 90% of capacity for the past year during which fixed costs were $320,000, variable costs were 60% of sales, and sales were $1,200,000. Operating profit was44%
If sales are $200,000, variable costs are 56% of sales, and operating income is $30,000, what is the contribution margin ratio?
Wiles Inc.'s unit selling price is $40, the unit variable costs are $30, fixed costs are $135,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units?
If fixed costs are $850,000 and variable costs are 70% of sales, what is the break-even point (in dollars)?
If fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65, what is the break-even sales (in units)?
If fixed costs are $750,000 and variable costs are 55% of sales, what is the break-even point (in dollars)?
Foggy Co. has the following operating data for its manufacturing operations:Unit selling price$ 250Unit variable cost$ 100Total fixed costs$840,000The company has decided to increase the wages of hourly workers, which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sales prices are held constant, the break-even point for Flynn Co. will
If fixed costs are $350,000, the unit selling price is $75, and the unit variable costs are $30, what is the break-even sales (in units)?
If fixed costs are $810,000, the unit selling price is $60, and the unit variable costs are $48, what is the break-even sales (in units) if the variable costs are increased by $2?
If fixed costs are $810,000, the unit selling price is $60, and the unit variable costs are $48, what is the break-even sales (in units) if fixed costs are reduced by $50,000?

18,000 units and 15,000 unitsIf fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (in units) if the unit selling price increases by $5?


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- Fall '13