54.
Data concerning Bunck Corporation’s single product appear below:
Per Unit
Percent of Sales
Selling price
$170
100%
Variable expenses
34
20%
Contribution margin
$136
80%
Fixed expenses are $202,000 per month. The company is currently selling 2,000 units per
month. Management is considering using a new component that would increase the unit
variable cost by $18. Since the new component would increase the features of the
company’s product, the marketing manager predicts that monthly sales would increase by
400 units. What should be the overall effect on the company’s monthly net operating
income of this change?
Sales (at $170 per unit)
Variable expenses (at $34 per unit and $52 per unit)
Contribution margin
Fixed expenses
Net operating income
55.
Steeler Corporation is planning to sell 100,000 units for $2.00 per unit and will break even
at this level of sales. Fixed expenses will be $75,000. What are the company’s variable
expenses per unit?
56.
Garcia Veterinary Clinic expects the following operating results next year:
Sales (total)
$600,000
Variable expenses (total)
$120,000
Fixed expenses (total)
$300,000
What is Garcia’s break-even point next year in sales dollars?
57.
Holdt Inc. produces and sells a single product. The selling price of the product is $230.00
per unit and its variable cost is $66.70 per unit. The fixed expense is $212,290 per month.
The break-even in monthly unit sales is closest to:
58.
Carlton Corporation sells a single product at a selling price of $40 per unit. Variable
expenses are $22 per unit and fixed expenses are $82,800. Carlton’s break-even point is:
59.
Lore Corporation has provided the following information:
Sales
$200,000
Variable expenses
$40,000
Fixed expenses
$10,000
Lore’s break-even point in dollar sales is:
60.
Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the
current volume of 50,000 books sold per year the company is just breaking even. Given
these data, the annual fixed expenses associated with the textbook total:
61.
Blane Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$230.00
Variable expense per unit
$73.60
Fixed expense per month
$542,708
The break-even in monthly unit sales is closest to:
62.
Data concerning Wang Corporation’s single product appear below:
Selling price per unit
$150.00
Variable expense per unit
$49.50
Fixed expense per month
$138,690
The break-even in monthly dollar sales is closest to:
63.
Wyly Inc. produces and sells a single product. The selling price of the product is $170.00
per unit and its variable cost is $62.90 per unit. The fixed expense is $356,643 per month.
The break-even in monthly dollar sales is closest to:
64.
Preyer Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$230.00
Variable expense per unit
$48.30
Fixed expense per month
$492,407
The break-even in monthly dollar sales is closest to:
65.
Data concerning Nazario Corporation’s single product appear below:
Selling price per unit
$230.00
Variable expense per unit
$85.10
Fixed expense per month
$188,370
The break-even in monthly unit sales is closest to:
66.
The following monthly data are available for the Wyatt Corporation and its only product:
Unit selling price
$36
Unit variable expenses
$28
Total fixed expenses
$50,000
Actual sales for the month of May
7,000
units
The margin of safety for the company during May was:
67.
Frank Corporation manufacturers a single product that has a selling price of $20.00 per
unit. Fixed expenses total $45,000 per year, and the company must sell 5,000 units to
break even. If the company has a target profit of $13,500, sales in units must be:
68.
Chibu Corporation is a single product firm with the following cost formula for all of its
costs for next year, where X is the number of units sold and Y is total cost:
Y = $225,000 + $30X
Chibu sells its product for $120 per unit. What would Chibu’s total sales dollars have to be
next year in order to generate $270,000 of net operating income?
69.
Data concerning Cutshall Enterprises Corporation’s single product appear below:
Selling price per unit
$190.00
Variable expense per unit
$91.20
Fixed expense per month
$424,840
The unit sales to attain the company’s monthly target profit of $16,000 is closest to:
70.
The Breiden Corporation sells rodaks for $6.00 per unit. Fixed expenses total $37,500 per
month and variable expenses are $2.00 per unit. The number of units that must be sold
each month to realize a profit of 15% of sales is closest to:
71.
The contribution margin ratio of Baginski Corporation’s only product is 53%. The
company’s monthly fixed expense is $617,980 and the company’s monthly target profit is
$23,000. The dollar sales to attain that target profit is closest to:
72.
Havely International Corporation’s only product sells for $200.00 per unit and its variable
expense is $70.00. The company’s monthly fixed expense is $390,000 per month. The unit
sales to attain the company’s monthly target profit of $10,000 is closest to:
73.
Moonen Corporation produces and sells a single product whose contribution margin ratio
is 57%. The company’s monthly fixed expense is $487,350 and the company’s monthly
target profit is $10,000. The dollar sales to attain that target profit is closest to:
74.
Sanes Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$240.00
Variable expense per unit
$88.80
Fixed expense per month
$498,960
The unit sales to attain the company’s monthly target profit of $19,000 is closest to: