139. The break-even sales in dollars is (round to the nearest dollar):
140. The company’s break-even in bundles is closest to:
141. The company’s contribution margin ratio is closest to:
142. The company’s degree of operating leverage is closest to:
143. The company’s break-even in kilograms is closest to:
144. The company’s contribution margin ratio is closest to:
145. The company’s degree of operating leverage is closest to:
146. The break-even point for Southwest Industries in pairs of gloves is:
3-129
147. The contribution margin ratio is closest to:
Mark Corporation produces two models of calculators. The Business model sells for $60,
and the Math model sells for $40. The variable expenses are given below:
The fixed expenses are $75,000 per month. The expected monthly sales of each model are:
Business, 1,000 units; Math, 500 units.
148. The contribution margin ratio for the Business model is:
149. The break-even point in unit sales for the expected sales mix is closest to:
3-132
Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut
wood model. The oak model sells for $60 and the chestnut wood model sells for $100. The
variable expenses are as follows:
Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed expenses
are budgeted at $135,000 per year.
150. The yearly break-even point in total sales for the expected sales mix is:
3-134
151. The company’s overall contribution margin ratio for the expected sales mix is:
East Company has the following budgeted cost and revenue data:
152. To reach a target net operating income of $490,000, East Company must sell:
3-136
153. A 10% increase in fixed expense would result in:
Jackson Company’s operating results for last year are given below:
154. If the company wants to increase its total contribution margin by 40% over last year, it
will need to increase its sales by:
3-138
155. If the company’s fixed expenses decrease by 20% next year, the break-even point will
change from its previous level by:
Madengrad Company manufactures a single product called a densimeter. This product is a
density monitoring device attached to large industrial mixing machines used in flour, rubber,
petroleum, and chemical manufacturing. A densimeter sells for $900 per unit. The following
variable expenses are incurred to produce and sell each densimeter:
Madengrad’s annual fixed expenses are $6,600,000.
156. If Madengrad Company achieves a sales and production volume of 8,000 units, the annual
net operating income (loss) is expected to be:
3-140
157. The annual sales volume required for Madengrad Company to break-even is:
Wright Corporation’s contribution format income statement for last month appears below.
There were no beginning or ending inventories. The company produced and sold 3,000 units
during the month.