96.
Grisham Corporation produces and sells a single product. The company has provided its
contribution format income statement for February.
Sales (5,600 units)
$358,400
Variable expenses
229,600
Contribution margin
128,800
Fixed expenses
108,400
Net operating income
$20,400
If the company sells 5,900 units, its total contribution margin should be closest to:
97.
Grisham Corporation produces and sells a single product. The company has provided its
contribution format income statement for February.
Sales (5,600 units)
$358,400
Variable expenses
229,600
Contribution margin
128,800
Fixed expenses
108,400
Net operating income
$20,400
If the company sells 5,700 units, its net operating income should be closest to:
98.
A cement manufacturer has supplied the following data:
Tons of cement produced and sold
220,000
Sales revenue
$924,000
Variable manufacturing expense
$297,000
Fixed manufacturing expense
$280,000
Variable selling and administrative
expense
$165,000
Fixed selling and administrative
expense
$82,000
Net operating income
$100,000
What is the company’s unit contribution margin?
99.
A cement manufacturer has supplied the following data:
Tons of cement produced and sold
220,000
Sales revenue
$924,000
Variable manufacturing expense
$297,000
Fixed manufacturing expense
$280,000
Variable selling and administrative
expense
$165,000
Fixed selling and administrative
expense
$82,000
Net operating income
$100,000
The company’s contribution margin ratio is closest to:
5-190
100.
A cement manufacturer has supplied the following data:
Tons of cement produced and sold
220,000
Sales revenue
$924,000
Variable manufacturing expense
$297,000
Fixed manufacturing expense
$280,000
Variable selling and administrative
expense
$165,000
Fixed selling and administrative
expense
$82,000
Net operating income
$100,000
Unit sales
Sales (at $4.20 per unit)
Variable expenses:
Contribution margin
If the company increases its unit sales volume by 5% without increasing its fixed
expenses, then total net operating income should be closest to:
5-191
101.
A tile manufacturer has supplied the following data:
Boxes of tiles produced and sold
580,000
Sales revenue
$2,842,000
Variable manufacturing expense
$1,653,000
Fixed manufacturing expense
$784,000
Variable selling and administrative
expense
$145,000
Fixed selling and administrative
expense
$128,000
Net operating income
$132,000
What is the company’s unit contribution margin?
102.
A tile manufacturer has supplied the following data:
Boxes of tiles produced and sold
580,000
Sales revenue
$2,842,000
Variable manufacturing expense
$1,653,000
Fixed manufacturing expense
$784,000
Variable selling and administrative
expense
$145,000
Fixed selling and administrative
expense
$128,000
Net operating income
$132,000
The company’s contribution margin ratio is closest to:
103.
A tile manufacturer has supplied the following data:
Boxes of tiles produced and sold
580,000
Sales revenue
$2,842,000
Variable manufacturing expense
$1,653,000
Fixed manufacturing expense
$784,000
Variable selling and administrative expense
$145,000
Fixed selling and administrative expense
$128,000
Net operating income
$132,000
If the company increases its unit sales volume by 5% without increasing its fixed
expenses, then total net operating income should be closest to:
Unit sales
Sales (at $4.90 per unit)
Variable expenses:
Contribution margin
Fixed expenses:
5-195
5-196
104.
A company that makes organic fertilizer has supplied the following data:
Bags produced and sold
240,000
Sales revenue
$1,896,000
Variable manufacturing expense
$804,000
Fixed manufacturing expense
$520,000
Variable selling and administrative
expense
$180,000
Fixed selling and administrative
expense
$270,000
Net operating income
$122,000
The company’s margin of safety in units is closest to:
5-197
105.
A company that makes organic fertilizer has supplied the following data:
Bags produced and sold
240,000
Sales revenue
$1,896,000
Variable manufacturing expense
$804,000
Fixed manufacturing expense
$520,000
Variable selling and administrative
expense
$180,000
Fixed selling and administrative
expense
$270,000
Net operating income
$122,000
The company’s unit contribution margin is closest to:
106.
A company that makes organic fertilizer has supplied the following data:
Bags produced and sold
240,000
Sales revenue
$1,896,000
Variable manufacturing expense
$804,000
Fixed manufacturing expense
$520,000
Variable selling and administrative
expense
$180,000
Fixed selling and administrative
expense
$270,000
Net operating income
$122,000
Sales revenue
$1,896,000
Variable expenses:
804,000
expense
Contribution margin
The company’s degree of operating leverage is closest to:
5-199
107.
A manufacturer of premium wire strippers has supplied the following data:
Units produced and sold
340,000
Sales revenue
$2,448,000
Variable manufacturing expense
$1,258,000
Fixed manufacturing expense
$716,000
Variable selling and administrative
expense
$306,000
Fixed selling and administrative
expense
$124,000
Net operating income
$44,000
The company’s margin of safety in units is closest to:
108.
A manufacturer of premium wire strippers has supplied the following data:
Units produced and sold
340,000
Sales revenue
$2,448,000
Variable manufacturing expense
$1,258,000
Fixed manufacturing expense
$716,000
Variable selling and administrative
expense
$306,000
Fixed selling and administrative
expense
$124,000
Net operating income
$44,000
The company’s unit contribution margin is closest to:
109.
A manufacturer of premium wire strippers has supplied the following data:
Units produced and sold
340,000
Sales revenue
$2,448,000
Variable manufacturing expense
$1,258,000
Fixed manufacturing expense
$716,000
Variable selling and administrative
expense
$306,000
Fixed selling and administrative
expense
$124,000
Net operating income
$44,000
The company’s degree of operating leverage is closest to:
110.
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced
and sold
280,000
Sales revenue
$2,072,000
Variable manufacturing expense
$1,134,000
Fixed manufacturing expense
$436,000
Variable selling and administrative
expense
$238,000
Fixed selling and administrative
expense
$164,000
Net operating income
$100,000
The company’s break-even in unit sales is closest to:
111.
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced
and sold
280,000
Sales revenue
$2,072,000
Variable manufacturing expense
$1,134,000
Fixed manufacturing expense
$436,000
Variable selling and administrative
expense
$238,000
Fixed selling and administrative
expense
$164,000
Net operating income
$100,000
The company’s contribution margin ratio is closest to:
112.
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced
and sold
280,000
Sales revenue
$2,072,000
Variable manufacturing expense
$1,134,000
Fixed manufacturing expense
$436,000
Variable selling and administrative
expense
$238,000
Fixed selling and administrative
expense
$164,000
Net operating income
$100,000
The company’s degree of operating leverage is closest to: