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
Selling price per unit ($90,000 ÷ 3,000 units)
30.00
Variable cost per unit ($58,500 ÷ 3,000 units)
19.50
Unit contribution margin
10.50
Unit contribution margin (a)
$
Increased unit sales (b)
40
Increase in net operating income (a) × (b)
$
420.00
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
Selling price per unit ($90,000 ÷ 3,000 units)
30.00
Variable cost per unit ($58,500 ÷ 3,000 units)
19.50
Unit contribution margin
10.50
Unit contribution margin (a)
$
Unit sales (b)
Contribution margin (a) × (b)
$
Fixed expenses
Net operating income
$
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
Total contribution margin (a)
$
135,000
Total unit sales (b)
Unit contribution margin (a) ÷ (b)
$
Selling price per unit ($540,000 ÷ 9,000 units)
60
Variable cost per unit ($405,000 ÷ 9,000 units)
45
Unit contribution margin
15
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
Selling price per unit ($280,000 ÷ 7,000 units)
40
Variable cost per unit ($182,000 ÷ 7,000 units)
26
Unit contribution margin
14
Selling price ($40 per unit + $3 per unit)
$
Variable cost per price
Unit contribution margin (a)
$
Contribution margin (a) × (b)
$
108,800
Fixed expenses
Net operating income
$
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
Selling price per unit ($280,000 ÷ 7,000 units)
40
Variable cost per unit ($182,000 ÷ 7,000 units)
26
Unit contribution margin
14
Selling price
$
Variable cost per price ($26 per unit + $10 per unit)
Unit contribution margin (a)
$
Unit sales (7,000 units + 15,800 units) (b)
Contribution margin (a) × (b)
$
Fixed expenses ($84,000 + $1,500)
Net operating income
$