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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:
Selling price $150 per unit
Current sales 13,900 units
Break-even sales 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?
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
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?
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
The fixed expenses of the entire company were $30,970. If the sales mix were to shift toward
Product D08Q with total dollar sales remaining constant, the overall break-even point for the
entire company:
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
The fixed expenses of the entire company were $24,010. The break-even point for the entire
company is closest to:
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:
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