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37. The following information relates to Clyde Corporation which produced and sold 50,000
units last month.
There were no beginning or ending inventories. Production and sales next month are expected to
be 40,000 units. The company's unit contribution margin next month should be:
38. Mancuso Corporation has provided its contribution format income statement for January.
The company produces and sells a single product.
If the company sells 3,100 units, its total contribution margin should be closest to:
39. Dimitrov Corporation, a company that produces and sells a single product, has provided
its contribution format income statement for July.
If the company sells 6,900 units, its net operating income should be closest to:
40. Sensabaugh Inc., a company that produces and sells a single product, has provided its
contribution format income statement for January.
If the company sells 1,600 units, its total contribution margin should be closest to:
41. Gaudy Inc. produces and sells a single product. The company has provided its
contribution format income statement for May.
If the company sells 4,300 units, its net operating income should be closest to:
42. The contribution margin ratio is 25% for Grain Company and the break-even point in sales
is $200,000. To obtain a target net operating income of $60,000, sales would have to be:
43. The contribution margin ratio is 30% for the Honeyville Company and the break-even
point in sales is $150,000. If the company's target net operating income is $60,000, sales would
have to be:
44. Rothe Company manufactures and sells a single product that it sells for $90 per unit and
has a contribution margin ratio of 35%. The company's fixed expenses are $46,800. If Rothe
desires a monthly target net operating income equal to 15% of sales, the amount of sales in units
will have to be (rounded):
45. The Herald Company manufactures and sells a single product which sells for $50 per unit
and has a contribution margin ratio of 30%. The company's monthly fixed expenses are $25,000. If
Herald desires a monthly target net operating income equal to 20% of sales dollars, sales in units
will have to be (rounded):
46. Street Company's fixed expenses total $150,000, its variable expense ratio is 60% and its
variable expenses are $4.50 per unit. Based on this information, the break-even point in units is:
47. South Company sells a single product for $20 per unit. If variable expenses are 60% of
sales and fixed expenses total $9,600, the break-even point will be:
48. Turner Company's contribution margin ratio is 15%. If the degree of operating leverage is
12 at the $150,000 sales level, net operating income at the $150,000 sales level must equal:
49. Patterson Company's variable expenses are 55% of sales. At a $400,000 sales level, the
degree of operating leverage is 5. If sales increase by $30,000, the new degree of operating
leverage will be (rounded):
50. Darth Company sells three products. Sales and contribution margin ratios for the three
products follow:
Given these data, the contribution margin ratio for the company as a whole would be:
51. Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the
fixed expenses total $35,000 per period. By how much will net operating income change if sales
are expected to increase by $40,000?
52. Knoke Corporation's contribution margin ratio is 29% and its fixed monthly expenses are
$17,000. If the company's sales for a month are $98,000, what is the best estimate of the
company's net operating income? Assume that the fixed monthly expenses do not change.
53. Balonek Inc.'s contribution margin ratio is 57% and its fixed monthly expenses are
$41,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of
the company's net operating income in a month when sales are $112,000?
54. Danneman Corporation's fixed monthly expenses are $13,000 and its contribution margin
ratio is 56%. Assuming that the fixed monthly expenses do not change, what is the best estimate
of the company's net operating income in a month when sales are $41,000?
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55. Sinclair Company's single product has a selling price of $25 per unit. Last year the
company reported a profit of $20,000 and variable expenses totaling $180,000. The product has a
40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the
current year to reduce its selling price by $2 per unit. How many units must be sold in the current
year to earn the same profit as was earned last year?
56. Pool Company's variable expenses are 36% of sales. Pool is contemplating an advertising
campaign that will cost $20,000. If sales increase by $80,000, the company's net operating
income should increase by:
