75.
A product sells for $10 per unit and has variable expenses of $6 per unit. Fixed expenses
total $45,000 per month. How many units of the product must be sold each month to yield
a monthly profit of $15,000?
76.
Palomo Corporation sells a product for $170 per unit. The product’s current sales are
35,200 units and its break-even sales are 25,344 units. The margin of safety as a
percentage of sales is closest to:
77.
Malley Corporation has provided the following data concerning its only product:
$150 per unit
13,900 units
10,147 units
What is the margin of safety in dollars?
78.
Renfrew Corporation has provided the following data concerning its only product:
Selling price
$110 per unit
Current sales
22,400 units
Break-even sales
15,904 units
The margin of safety as a percentage of sales is closest to:
79.
Morganti Corporation sells a product for $140 per unit. The product’s current sales are
40,700 units and its break-even sales are 31,339 units.
What is the margin of safety in dollars?
5-171
80.
Sales in North Corporation increased from $60,000 per year to $63,000 per year while net
operating income increased from $10,000 to $12,000. Given this data, the company’s
degree of operating leverage must have been:
81.
Alpha Corporation reported the following data for its most recent year: sales, $500,000;
variable expenses, $300,000; and fixed expenses, $150,000. The company’s degree of
operating leverage is:
82.
Tribley Inc. has an operating leverage of 8.0. If the company’s sales increase by 19%, its
net operating income should increase by about:
83.
Cleckley Corporation’s operating leverage is 5.9. If the company’s sales increase by 19%,
its net operating income should increase by about:
84.
Brown Corporation has sales of 2,000 units at $70 per unit. Variable expenses are 40% of
the selling price. If total fixed expenses are $44,000, the degree of operating leverage is:
85.
Seiersen Corporation’s contribution format income statement for February appears below:
Sales
$960,400
Variable expenses
568,400
Contribution margin
392,000
Fixed expenses
304,500
Net operating income
$87,500
The degree of operating leverage is closest to:
86.
Mason Enterprises has prepared the following budget for the month of July:
Selling
Price per Unit
Variable
Cost per Unit
Unit
Sales
Product A
$10
$4
15,000
Product B
$15
$8
20,000
Product C
$18
$9
5,000
Unit sales (a)
Selling price per unit (b)
Variable cost per unit (c)
Contribution margin
$275,000
Assuming that total fixed expenses will be $150,000 and the sales mix remains constant,
the break-even point would be closest to:
87.
The Agate Corporation manufactures and sells two types of bookcases, standard and
deluxe. Agate expects the following operating results next year for each type of bookcase:
Standard
Deluxe
Sales
$450,000
$50,000
Variable expenses (total)
$180,000
$20,000
Agate expects to have a total of $57,600 in fixed expenses next year. What is Agate’s
break-even point next year in sales dollars?
Sales
Variable expenses
Contribution margin
88.
Macmullen Corporation produces and sells two products. Data concerning those products
for the most recent month appear below:
Product D08Q
Product D05D
Sales
$21,000
$49,000
Variable expenses
$7,140
$26,460
Sales (a)
Variable expenses
89.
Closser Corporation produces and sells two products. In the most recent month, Product
M50S had sales of $39,000 and variable expenses of $12,870. Product H50G had sales of
$12,000 and variable expenses of $4,980. The fixed expenses of the entire company were
$33,050. The break-even point for the entire company is closest to:
90.
Comings Corporation produces and sells two products. In the most recent month, Product
R19J had sales of $30,000 and variable expenses of $9,000. Product O37G had sales of
$34,000 and variable expenses of $10,840. The fixed expenses of the entire company were
$35,560. If the sales mix were to shift toward Product R19J with total dollar sales
remaining constant, the overall break-even point for the entire company:
91.
Hitchens Inc. produces and sells two products. Data concerning those products for the
most recent month appear below:
Product V06Z
Product U85C
Sales
$18,000
$17,000
Variable expenses
$8,820
$1,330
Sales
Variable expenses
Contribution Margin
92.
Sammis Inc., which produces and sells a single product, has provided its contribution
format income statement for January.
Sales (2,900 units)
$226,200
Variable expenses
95,700
Contribution margin
130,500
Fixed expenses
95,600
Net operating income
$34,900
If the company sells 2,600 units, its total contribution margin should be closest to:
93.
Sammis Inc., which produces and sells a single product, has provided its contribution
format income statement for January.
Sales (2,900 units)
$226,200
Variable expenses
95,700
Contribution margin
130,500
Fixed expenses
95,600
Net operating income
$34,900
If the company sells 2,500 units, its net operating income should be closest to:
94.
Lasseter Corporation has provided its contribution format income statement for August.
The company produces and sells a single product.
Sales (3,700 units)
$107,300
Variable expenses
48,100
Contribution margin
59,200
Fixed expenses
43,400
Net operating income
$15,800
If the company sells 3,800 units, its total contribution margin should be closest to:
95.
Lasseter Corporation has provided its contribution format income statement for August.
The company produces and sells a single product.
Sales (3,700 units)
$107,300
Variable expenses
48,100
Contribution margin
59,200
Fixed expenses
43,400
Net operating income
$15,800
If the company sells 3,900 units, its net operating income should be closest to: