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130) Keomuangtai Corporation produces and sells a single product. The company has provided
its contribution format income statement for October.
Sales (4,600 units)
$
266,800
Variable expenses
179,400
Contribution margin
87,400
Fixed expenses
62,200
Net operating income
$
25,200
If the company sells 4,200 units, its net operating income should be closest to:
A) $17,600
B) $23,009
C) $25,200
D) $2,000
131) Wight Corporation has provided its contribution format income statement for June. The
company produces and sells a single product.
Sales (9,600 units)
$
336,000
Variable expenses
144,000
Contribution margin
192,000
Fixed expenses
137,000
Net operating income
$
55,000
If the company sells 9,100 units, its total contribution margin should be closest to:
A) $174,500
B) $192,000
C) $52,135
D) $182,000
132) Wight Corporation has provided its contribution format income statement for June. The
company produces and sells a single product.
Sales (9,600 units)
$
336,000
Variable expenses
144,000
Contribution margin
192,000
Fixed expenses
137,000
Net operating income
$
55,000
If the company sells 9,700 units, its net operating income should be closest to:
A) $57,000
B) $55,000
C) $55,573
D) $58,500
133) Lister Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (3,000 units)
$
90,000
Variable expenses
58,500
Contribution margin
31,500
Fixed expenses
21,000
Net operating income
$
10,500
If sales increase to 3,040 units, the increase in net operating income would be closest to:
A) $420.00
B) $140.00
C) $1,200.00
D) $780.00
134) Lister Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (3,000 units)
$
90,000
Variable expenses
58,500
Contribution margin
31,500
Fixed expenses
21,000
Net operating income
$
10,500
If sales decline to 2,900 units, the net operating income would be closest to:
A) $1,050
B) $30,450
C) $10,150
D) $9,450
135) Souza Inc, which produces and sells a single product, has provided its contribution format
income statement for October.
Sales (4,000 units)
$
88,000
Variable expenses
40,000
Contribution margin
48,000
Fixed expenses
41,700
Net operating income
$
6,300
If the company sells 3,600 units, its total contribution margin should be closest to:
A) $39,200
B) $5,670
C) $43,200
D) $48,000
136) Souza Inc, which produces and sells a single product, has provided its contribution format
income statement for October.
Sales (4,000 units)
$
88,000
Variable expenses
40,000
Contribution margin
48,000
Fixed expenses
41,700
Net operating income
$
6,300
If the company sells 3,500 units, its net operating income should be closest to:
A) $5,513
B) $6,300
C) $300
D) -$4,700
137) Kelsay Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
540,000
Variable expenses
405,000
Contribution margin
135,000
Fixed expenses
130,500
Net operating income
$
4,500
The contribution margin per unit is closest to:
A) $15.00
B) $0.50
C) $45.00
D) $60.00
138) Kelsay Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
540,000
Variable expenses
405,000
Contribution margin
135,000
Fixed expenses
130,500
Net operating income
$
4,500
The contribution margin ratio is closest to:
A) 75%
B) 67%
C) 25%
D) 33%
139) Kelsay Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
540,000
Variable expenses
405,000
Contribution margin
135,000
Fixed expenses
130,500
Net operating income
$
4,500
The variable expense ratio is closest to:
A) 33%
B) 67%
C) 25%
D) 75%
140) A cement manufacturer has supplied the following data:
Tons of cement produced and sold
680,000
Sales revenue
$
2,788,000
Variable manufacturing expense
$
1,156,000
Fixed manufacturing expense
$
760,000
Variable selling and administrative expense
$
272,000
Fixed selling and administrative expense
$
294,000
Net operating income
$
306,000
What is the company's unit contribution margin?
A) $0.45 per unit
B) $2.10 per unit
C) $2.00 per unit
D) $4.10 per unit
141) A cement manufacturer has supplied the following data:
Tons of cement produced and sold
680,000
Sales revenue
$
2,788,000
Variable manufacturing expense
$
1,156,000
Fixed manufacturing expense
$
760,000
Variable selling and administrative expense
$
272,000
Fixed selling and administrative expense
$
294,000
Net operating income
$
306,000
The company's contribution margin ratio is closest to:
A) 39.0%
B) 51.2%
C) 11.0%
D) 48.8%
142) A cement manufacturer has supplied the following data:
Tons of cement produced and sold
680,000
Sales revenue
$
2,788,000
Variable manufacturing expense
$
1,156,000
Fixed manufacturing expense
$
760,000
Variable selling and administrative expense
$
272,000
Fixed selling and administrative expense
$
294,000
Net operating income
$
306,000
If the company increases its unit sales volume by 4% without increasing its fixed expenses, then
total net operating income should be closest to:
A) $12,240
B) $318,240
C) $360,400
D) $311,973
143) A tile manufacturer has supplied the following data:
Boxes of tiles produced and sold
520,000
Sales revenue
$
2,132,000
Variable manufacturing expense
$
650,000
Fixed manufacturing expense
$
464,000
Variable selling and administrative expense
$
260,000
Fixed selling and administrative expense
$
312,000
Net operating income
$
446,000
What is the company's unit contribution margin?
A) $0.86 per unit
B) $2.35 per unit
C) $4.10 per unit
D) $1.75 per unit
144) A tile manufacturer has supplied the following data:
Boxes of tiles produced and sold
520,000
Sales revenue
$
2,132,000
Variable manufacturing expense
$
650,000
Fixed manufacturing expense
$
464,000
Variable selling and administrative expense
$
260,000
Fixed selling and administrative expense
$
312,000
Net operating income
$
446,000
The company's contribution margin ratio is closest to:
A) 42.7%
B) 57.3%
C) 45.8%
D) 21.0%
145) A tile manufacturer has supplied the following data:
Boxes of tiles produced and sold
520,000
Sales revenue
$
2,132,000
Variable manufacturing expense
$
650,000
Fixed manufacturing expense
$
464,000
Variable selling and administrative expense
$
260,000
Fixed selling and administrative expense
$
312,000
Net operating income
$
446,000
If the company increases its unit sales volume by 3% without increasing its fixed expenses, then
total net operating income should be closest to:
A) $459,380
B) $453,667
C) $13,380
D) $482,660
146) Sjostrom Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (7,000 units)
$
280,000
Variable expenses
182,000
Contribution margin
98,000
Fixed expenses
84,000
Net operating income
$
14,000
If the selling price increases by $3 per unit and the sales volume decreases by 600 units, the net
operating income would be closest to:
A) $24,800
B) $35,000
C) $19,200
D) $32,000
147) Sjostrom Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (7,000 units)
$
280,000
Variable expenses
182,000
Contribution margin
98,000
Fixed expenses
84,000
Net operating income
$
14,000
If the variable cost per unit increases by $10, spending on advertising increases by $1,500, and
unit sales increase by 15,800 units, the net operating income would be closest to:
A) $12,500
B) $114,100
C) $91,200
D) $5,700
