{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Smith company sells a single product at a selling

Info icon This preview shows pages 2–4. Sign up to view the full content.

View Full Document Right Arrow Icon
5. Smith Company sells a single product at a selling price of $30 per unit. Variable expenses are $12 per unit and fixed expenses are $41,400. Smith's break-even point is: A) 1,380 units. B) 2,300 units. C) 3,450 units. D) 6,900 units. 6. The following information pertains to Sisk Co.: Sales (25,000 units) ......................... $500,000 Manufacturing expenses: Variable ...................................................... 170,000 Fixed ...................................................... 35,000 Selling and general expenses: Variable ...................................................... 5,000 Fixed ...................................................... 30,000 Sisk's break-even point in number of units is: 7. Rider Company sells a single product. The product has a selling price of $40 per unit and variable expenses of $15 per unit. The company's fixed expenses total $30,000 per year. The company's break-even point in terms of total dollar sales is: 8. The following information pertains to Clove Co.: Budgeted sales ................................. $1,000,00 0 Breakeven sales ............................... 700,000 Budgeted contribution margin ......... 600,000
Image of page 2

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Clove's margin of safety is: Use the following to answer questions 9-10: An income statement for Sam's Bookstore (a merchandiser) for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales ...................................... $900,000 Cost of goods sold ................ 630,00 0 Gross margin ......................... 270,000 Less operating expenses: Selling ........................................... $100,00 0 Administration ........................................... 104,00 0 204,00 0 Net operating income ............ $ 66,000 On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. 9. The contribution margin for Sam's Bookstore for the first quarter is: A) $180,000. B) $774,000. C) $144,000. D) $756,000. 10. The net operating income using the contribution approach for the first quarter is:
Image of page 3
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern