ANEXO A week 1 answ.

# Dolce company is planning to sell 400000 hammers for

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11. Dolce Company is planning to sell 400,000 hammers for \$1.50 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs? a. \$120,000 b. \$280,000 c. \$400,000 d.\$480,000 12. Moschino Company sells compact disk players for \$60 each. Variable costs are \$40 per unit, and fixed costs total \$30,000. How many compact disk players must Moschino sell to earn net income of \$70,000? 13. Gaultier Company had actual sales of \$800,000 when break-even sales were \$600,000. What is the margin of safety ratio? 14. Buerhrle’s CVP income statement included sales of 2,000 units, a selling price of \$100, variable expenses of \$60 per unit, and fixed expenses of \$44,000. Contribution margin is: 15. Vazquez Company’s cost of goods sold is \$350,000 variable and \$200,000 fixed. The company’s selling and administrative expenses are \$250,000 variable and \$300,000 fixed. If the company’s sales are \$1,400,000, what is its contribution margin? a. \$300,000

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b. \$800,000 c. \$850,000 d. \$900,000
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• Spring '11
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