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97. Sperberg Corporation's operating leverage is 3.7. If the company's sales increase by 12%,
its net operating income should increase by about:
98. Tanigawa Inc. has an operating leverage of 8.7. If the company's sales increase by 8%, its
net operating income should increase by about:
99. The following monthly data are available for the W.K. Kent Company:
The break-even sales for the month for the company are closest to:
100. Rickers Inc. produces and sells two products. Data concerning those products for the
most recent month appear below:
The fixed expenses of the entire company were $38,940. The break-even point for the entire
company is closest to:
101. Balbuena Corporation produces and sells two products. Data concerning those products
for the most recent month appear below:
The fixed expenses of the entire company were $15,630. If the sales mix were to shift toward
Product K87W with total sales dollars remaining constant, the overall break-even point for the
entire company:
102. Mounts Corporation produces and sells two products. In the most recent month, Product
I05L had sales of $32,000 and variable expenses of $10,880. Product P42T had sales of $45,000
and variable expenses of $18,380. And the fixed expenses of the entire company were $46,070.
The break-even point for the entire company is closest to:
103. Fjeld Corporation produces and sells two products. In the most recent month, Product
C66G had sales of $20,000 and variable expenses of $7,200. Product U11T had sales of $19,000
and variable expenses of $8,400. And the fixed expenses of the entire company were $21,740. If
the sales mix were to shift toward Product C66G with total dollar sales remaining constant, the
overall break-even point for the entire company:
104. The variable expense per unit is:
105. The break-even level in sales dollars is:
106. Net operating income at sales of 12,000 units is:
A cement manufacturer has supplied the following data:
107. What is the company's unit contribution margin?
108. The company's contribution margin ratio is closest to:
3-93
109. If the company increases its unit sales volume by 3% without increasing its fixed
expenses, then total net operating income should be closest to:
A tile manufacturer has supplied the following data:
110. What is the company's unit contribution margin?
111. The company's contribution margin ratio is closest to:
3-95
112. If the company increases its unit sales volume by 3% without increasing its fixed
expenses, then total net operating income should be closest to:
Drake Company's contribution format income statement for the most recent year appears
below:
113. The unit contribution margin is:
114. The break-even point in sales dollars is:
115. If the company desires a net operating income of $20,000, the number of units needed to
be sold is:
3-98
116. The sales manager is convinced that a $60,000 expenditure on advertising will increase
unit sales by 50% without any other increase in fixed expenses. If the sales manager is correct,
the company's net operating income would increase by:
The following data were supplied by Reader Corporation:
117. The contribution margin is:
3-100
118. The break-even point in sales dollars is:
A company that makes organic fertilizer has supplied the following data:
