Accounting Chapter 3 The Company’s Margin Safety Units Closest

subject Type Homework Help
subject Pages 14
subject Words 2429
subject Authors Eric Noreen, Peter Brewer, Ray Garrison

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119. The company's margin of safety in units is closest to:
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120. The company's unit contribution margin is closest to:
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121. The company's degree of operating leverage is closest to:
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122. The contribution margin per chair for the Colonial model is:
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123. If the sales mix and sales units are as expected, the break-even in sales dollars is closest
to:
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Starwalt Corporation produces and sells a single product. The company has provided its
contribution format income statement for March.
124. If the company sells 7,900 units, its total contribution margin should be closest to:
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3-107
125. If the company sells 7,300 units, its net operating income should be closest to:
Pedulla Inc, which produces and sells a single product, has provided its contribution
format income statement for February.
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126. If the company sells 2,100 units, its total contribution margin should be closest to:
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127. If the company sells 2,900 units, its net operating income should be closest to:
The following is Allison Corporation's contribution format income statement for last
month:
The company has no beginning or ending inventories. The company produced and sold 10,000
units last month.
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128. What is the company's contribution margin ratio?
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129. What is the company's break-even sales in dollars?
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130. If sales increase by 200 units, by how much should net operating income increase?
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131. How many units would the company have to sell to attain target profits of $120,000?
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132. What is the company's margin of safety percentage?
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3-115
133. What is the company's degree of operating leverage?
Evergreen Corp. has provided the following data:
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134. The contribution margin ratio is:
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135. The margin of safety percentage is:
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3-118
136. The number of units needed to achieve a target net operating income of $49,500 would
be:
Paxton Corp has provided the following data concerning its operations last month:
Paxton Corp is a retailing organization.
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137. The operating leverage is:
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138. The contribution margin ratio is:

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