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49.
Refer to the information above. How many units must be sold each month to earn a
monthly operating income of $8,000? (Round your final answer to the next whole number.)
50.
Refer to the information above. What will be the monthly margin of safety (in dollars) if
1,800 units are sold each month?
51.
Refer to the information above. What will be Mitchell's monthly operating income if 1,800
units are sold each month?
The following data are available for product no. CK74, manufactured and sold by Ruby
Corporation:
52.
Refer to the information above. The contribution margin per unit for product no. CK74 is:
53.
Refer to the information above. The number of units of CK74 that Ruby must sell to break-
even is:
54.
Refer to the information above. The dollar sales volume necessary to produce operating
income of $245,000 is closest to (round your intermediate percentages to the nearest
whole number):
55.
In order to calculate break-even sales units, fixed costs are divided by the:
56.
All other things held constant, how will an increase in selling price affect the break-even
point measured in units?
57.
If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to
be sold to break-even if fixed costs equal $8,000?
58.
If the unit sales price is $7 and variable costs are $3, how many units have to be sold to
earn a profit of $3,600 if fixed costs equal $5,000?
59.
If the unit sales price is $12, variable costs are $6 per unit and fixed costs are $36,000 what
are the sales in dollars necessary to break-even?
60.
If the unit sales price is $14, variable costs are $7 per unit and fixed costs are $42,000, how
many units must be sold to earn an income of $250,000? (Round your final answer to the
next whole number.)
61.
If monthly fixed costs are $21,000 and the contribution margin ratio is 42%, the monthly
sales volume required to break even is:
Accents Associates sells only one product, with a current selling price of $70 per unit.
Variable costs are 40% of this selling price, and fixed costs are $12,000 per month.
Management has decided to reduce the selling price to $65 per unit in an effort to increase
sales. Assume that the cost of the product and fixed operating expenses are not changed
by this reduction in selling price.
62.
Refer to the information above. At the current selling price of $70 per unit, the contribution
margin ratio is:
63.
Refer to the information above. At the current selling price of $70 per unit, the dollar
volume of sales per month necessary for Accents to break-even is:
64.
Refer to the information above. At the current selling price of $70 per unit, what dollar
volume of sales per month is required for Accents to earn a monthly operating income of
$15,000?
65.
Refer to the information above. At the reduced selling price of $65 per unit, the contribution
margin ratio is (rounded, if necessary):
66.
Refer to the information above. At the reduced selling price of $65 per unit, what dollar
volume of sales per month is required to break-even? (Round your intermediate percentage
to one decimal place and final answer to nearest whole dollar.)
Grand Gimmicks Company produces a single product with a current selling price of $170.
Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is
considering increasing the selling price to $190 per unit. Assume that the variable cost per
unit of the product and monthly fixed expenses will not change as a result of the proposed
increase in selling price.
67.
Refer to the information above. At the current selling price of $170 per unit, the
contribution margin ratio is closest to:
68.
Refer to the information above. At the current selling price of $170 per unit, closest to what
dollar volume of sales per month is required for Grand Gimmicks to break-even? (Round
your intermediate percentage to one decimal place.)
69.
Refer to the information above. At the current selling price of $170 per unit, closest to what
dollar volume of sales per month is necessary for Grand Gimmicks to generate monthly
operating income of $12,000? (Round your intermediate percentage to one decimal place.)
70.
Refer to the information above. At the proposed increased selling price of $190 per unit, the
contribution margin ratio is closest to:
71.
Refer to the information above. At the proposed increased selling price of $190 per unit,
closest to what dollar volume of sales per month is required to break-even? (Round your
intermediate percentage to one decimal place.)
72.
The margin of safety is calculated by:
73.
The dollar amount by which sales can decline before an operating loss is incurred is called
the:
74.
A company with an operating income of $72,000 and a contribution margin ratio of 56% has
a margin of safety of: (rounded)
75.
In the area of cost-volume-profit analysis, the contribution margin ratio shows how much
each dollar of sales contributes to:
76.
If a product sells for $8, variable costs are $6 and fixed costs are $150,000, what would
total sales have to be in order to break-even?
77.
The following information is available:
What is the operating income?
78.
Product X sells for $35 per unit and has related variable costs of $25 per unit. The fixed
costs of producing product X are $65,000 per month. How many units of product X must be
sold each month to earn a monthly operating income of $85,000?
Sultan Company produces a single product. The selling price is $50 per unit, and variable
costs amount to $20 per unit. Sultan's fixed costs per month total $80,000.
79.
Refer to the information above. What is the contribution margin ratio of Sultan's product?
80.
Refer to the information above. What is the monthly sales volume in dollars necessary to
break-even? (Rounded)
81.
Refer to the information above. How many units must be sold each month to earn a
monthly operating income of $25,000?
82.
Refer to the information above. What will be the monthly margin of safety (in dollars) if
3,000 units are sold each month? (Rounded)
83.
Refer to the information above. What will be Sultan's monthly operating income if 3,700
units are sold each month?
84.
A product sells for $125, variable costs are $80, and fixed costs are $45,000. If the selling
price can be increased by 20% with a similar increase in variable costs, how many fewer
units would have to be sold to earn $300,000? (Rounded)
85.
Operating income can be calculated by:
86.
Montclair Company earns an average contribution margin ratio of 40% on its sales. The
local store manager estimates that he can increase monthly sales volume by $45,000 by
spending an additional $7,000 per month for direct mail advertising. Compute the monthly
increase in operating income if the manager's estimate about the increased sales volume is
accurate.
