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242) Hamernik, Inc., produces and sells a single product whose selling price is $240.00 per unit
and whose variable expense is $72.00 per unit. The company's fixed expense is $372,960 per
month.
Required:
Determine the monthly break-even in either unit or total dollar sales.
243) Frisch Corporation produces and sells a single product. Data concerning that product appear
below:
Selling price per unit
$
170.00
Variable expense per unit
$
83.30
Fixed expense per month
$
138,720
Required:
Determine the monthly break-even in either unit or total dollar sales.
244) Yamakawa Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
200.00
Variable expense per unit
$
64.00
Fixed expense per month
$
670,480
Required:
Determine the monthly break-even in unit sales.
245) Liz, Inc., produces and sells a single product. The product sells for $130.00 per unit and its
variable expense is $48.10 per unit. The company's monthly fixed expense is $223,587.
Required:
Determine the monthly break-even in unit sales.
246) Malensek International, Inc., produces and sells a single product. The product sells for
$240.00 per unit and its variable expense is $55.20 per unit. The company's monthly fixed
expense is $249,480.
Required:
Determine the monthly break-even in total dollar sales.
247) Brihon Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
230.00
Variable expense per unit
$
103.50
Fixed expense per month
$
518,650
Required:
a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that
target profit.
b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain
that target profit.
248) The contribution margin ratio of Kuck Corporation's only product is 75%. The company's
monthly fixed expense is $585,000 and the company's monthly target profit is $11,250.
Required:
Determine the dollar sales to attain the company's target profit.
249) Rachal Corporation produces and sells a single product whose selling price is $150.00 per
unit and whose variable expense is $57.00 per unit. The company's monthly fixed expense is
$381,300.
Required:
a. Assume the company's monthly target profit is $9,300. Determine the unit sales to attain that
target profit.
b. Assume the company's monthly target profit is $18,600. Determine the dollar sales to attain
that target profit.
250) Bussy Corporation produces and sells a single product whose contribution margin ratio is
54%. The company's monthly fixed expense is $561,600 and the company's monthly target profit
is $34,560.
Required:
Determine the dollar sales to attain the company's target profit.
251) Hawver Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
180.00
Variable expense per unit
$
81.00
Fixed expense per month
$
594,000
Required:
Assume the company's monthly target profit is $19,800. Determine the unit sales to attain that
target profit.
252) The selling price of Old Corporation's only product is $180.00 per unit and its variable
expense is $37.80 per unit. The company's monthly fixed expense is $483,480.
Required:
Assume the company's monthly target profit is $56,880. Determine the unit sales to attain that
target profit.
253) Dickus Corporation's only product sells for $100 per unit. Its current sales are 35,600 units
and its break-even sales are 29,192 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.
254) Haslem Inc. has provided the following data concerning its only product:
Selling price
$
100
per unit
Current sales
37,300
units
Break-even sales
26,483
units
Required:
Compute the margin of safety in both dollars and as a percentage of sales.
255) Knezevich Corporation makes a product that sells for $230 per unit. The product's current
sales are 36,900 units and its break-even sales are 32,103 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.
256) Lubke Corporation's contribution format income statement for the most recent month
follows:
Sales
$
506,000
Variable expenses
236,500
Contribution margin
269,500
Fixed expenses
241,700
Net operating income
$
27,800
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating
income that should result from a 3% increase in sales.
257) Mcquage Corporation has provided its contribution format income statement for July.
Sales
$
558,000
Variable expenses
306,900
Contribution margin
251,100
Fixed expenses
209,800
Net operating income
$
41,300
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating
income that should result from a 19% increase in sales.
258) In the most recent month, Sardella Corporation's total contribution margin was $46,200 and
its net operating income $13,200.
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating
income that should result from a 10% increase in sales.
238
259) Brancati Inc. produces and sells two products. Data concerning those products for the most
recent month appear below:
Product W07C
Product B29Z
Sales
$
25,000
$
27,000
Variable expenses
$
7,000
$
8,600
Fixed expenses for the entire company were $32,860.
Required:
a. Determine the overall break-even point for the company in total sales dollars.
b. If the sales mix shifts toward Product W07C with no change in total sales, what will happen to
the break-even point for the company?
260) Veren Inc. produces and sells two products. During the most recent month, Product F73A's
sales were $27,000 and its variable expenses were $9,450. Product L75P's sales were $14,000
and its variable expenses were $5,310. The company's fixed expenses were $21,060.
Required:
a. Determine the overall break-even point for the company in total sales dollars.
b. If the sales mix shifts toward Product F73A with no change in total sales, what will happen to
the break-even point for the company?
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