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121
148) Remmel Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (6,000 units)
$
300,000
Variable expenses
240,000
Contribution margin
60,000
Fixed expenses
59,000
Net operating income
$
1,000
If sales increase to 6,020 units, the increase in net operating income would be closest to:
A) $1,000.00
B) $800.00
C) $200.00
D) $3.33
149) Remmel Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (6,000 units)
$
300,000
Variable expenses
240,000
Contribution margin
60,000
Fixed expenses
59,000
Net operating income
$
1,000
If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net
operating income would be closest to:
A) $19,000
B) $16,800
C) $13,800
D) $17,733
150) Valdez Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (6,000 units)
$
240,000
Variable expenses
180,000
Contribution margin
60,000
Fixed expenses
54,000
Net operating income
$
6,000
The break-even point in unit sales is closest to:
A) 5,850 units
B) 4,500 units
C) 0 units
D) 5,400 units
151) Valdez Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (6,000 units)
$
240,000
Variable expenses
180,000
Contribution margin
60,000
Fixed expenses
54,000
Net operating income
$
6,000
The number of units that must be sold to achieve a target profit of $24,000 is closest to:
A) 30,000 units
B) 7,800 units
C) 13,800 units
D) 24,000 units
152) Nussbaum Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
180,000
Variable expenses
117,000
Contribution margin
63,000
Fixed expenses
56,700
Net operating income
$
6,300
The break-even point in unit sales is closest to:
A) 0 units
B) 5,850 units
C) 8,100 units
D) 8,685 units
153) Nussbaum Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
180,000
Variable expenses
117,000
Contribution margin
63,000
Fixed expenses
56,700
Net operating income
$
6,300
The break-even point in dollar sales is closest to:
A) $162,000
B) $117,000
C) $0
D) $173,700
154) Nussbaum Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
180,000
Variable expenses
117,000
Contribution margin
63,000
Fixed expenses
56,700
Net operating income
$
6,300
The number of units that must be sold to achieve a target profit of $16,100 is closest to:
A) 32,000 units
B) 19,400 units
C) 10,400 units
D) 23,000 units
155) Maruca Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
270,000
Variable expenses
175,500
Contribution margin
94,500
Fixed expenses
86,100
Net operating income
$
8,400
The break-even point in dollar sales is closest to:
A) $175,500
B) $261,600
C) $246,000
D) $0
156) Maruca Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (9,000 units)
$
270,000
Variable expenses
175,500
Contribution margin
94,500
Fixed expenses
86,100
Net operating income
$
8,400
The margin of safety in dollars is closest to:
A) $86,100
B) $8,400
C) $24,000
D) $94,500
157) Golebiewski Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (5,000 units)
$
150,000
Variable expenses
112,500
Contribution margin
37,500
Fixed expenses
35,250
Net operating income
$
2,250
The margin of safety in dollars is closest to:
A) $2,250
B) $9,000
C) $35,250
D) $37,500
158) Golebiewski Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (5,000 units)
$
150,000
Variable expenses
112,500
Contribution margin
37,500
Fixed expenses
35,250
Net operating income
$
2,250
The margin of safety percentage is closest to:
A) 2%
B) 24%
C) 75%
D) 6%
159) Shambo Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (3,000 units)
$
60,000
Variable expenses
42,000
Contribution margin
18,000
Fixed expenses
13,200
Net operating income
$
4,800
The margin of safety percentage is closest to:
A) 27%
B) 70%
C) 22%
D) 8%
160) Shambo Corporation has provided the following contribution format income statement.
Assume that the following information is within the relevant range.
Sales (3,000 units)
$
60,000
Variable expenses
42,000
Contribution margin
18,000
Fixed expenses
13,200
Net operating income
$
4,800
Using the degree of operating leverage, the estimated percent increase in net operating income as
the result of a 20% increase in sales is closest to:
A) 75.00%
B) 1.60%
C) 250.00%
D) 5.33%
161) A company that makes organic fertilizer has supplied the following data:
Bags produced and sold
200,000
Sales revenue
$
1,560,000
Variable manufacturing expense
$
660,000
Fixed manufacturing expense
$
448,000
Variable selling and administrative expense
$
180,000
Fixed selling and administrative expense
$
214,000
Net operating income
$
58,000
The company's margin of safety in units is closest to:
A) 115,128 units
B) 16,111 units
C) 168,986 units
D) 100,444 units
162) A company that makes organic fertilizer has supplied the following data:
Bags produced and sold
200,000
Sales revenue
$
1,560,000
Variable manufacturing expense
$
660,000
Fixed manufacturing expense
$
448,000
Variable selling and administrative expense
$
180,000
Fixed selling and administrative expense
$
214,000
Net operating income
$
58,000
The company's unit contribution margin is closest to:
A) $4.50 per unit
B) $6.90 per unit
C) $3.60 per unit
D) $4.20 per unit
163) A company that makes organic fertilizer has supplied the following data:
Bags produced and sold
200,000
Sales revenue
$
1,560,000
Variable manufacturing expense
$
660,000
Fixed manufacturing expense
$
448,000
Variable selling and administrative expense
$
180,000
Fixed selling and administrative expense
$
214,000
Net operating income
$
58,000
The company's degree of operating leverage is closest to:
A) 1.27
B) 26.90
C) 3.45
D) 12.41
164) A manufacturer of premium wire strippers has supplied the following data:
Units produced and sold
580,000
Sales revenue
$
4,176,000
Variable manufacturing expense
$
2,871,000
Fixed manufacturing expense
$
778,000
Variable selling and administrative expense
$
348,000
Fixed selling and administrative expense
$
104,000
Net operating income
$
75,000
The company's margin of safety in units is closest to:
A) 234,222 units
B) 564,242 units
C) 45,455 units
D) 457,500 units
165) A manufacturer of premium wire strippers has supplied the following data:
Units produced and sold
580,000
Sales revenue
$
4,176,000
Variable manufacturing expense
$
2,871,000
Fixed manufacturing expense
$
778,000
Variable selling and administrative expense
$
348,000
Fixed selling and administrative expense
$
104,000
Net operating income
$
75,000
The company's unit contribution margin is closest to:
A) $2.25 per unit
B) $5.55 per unit
C) $1.65 per unit
D) $6.60 per unit
166) A manufacturer of premium wire strippers has supplied the following data:
Units produced and sold
580,000
Sales revenue
$
4,176,000
Variable manufacturing expense
$
2,871,000
Fixed manufacturing expense
$
778,000
Variable selling and administrative expense
$
348,000
Fixed selling and administrative expense
$
104,000
Net operating income
$
75,000
The company's degree of operating leverage is closest to:
A) 55.68
B) 3.65
C) 7.73
D) 12.76
167) A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced and sold
360,000
Sales revenue
$
2,412,000
Variable manufacturing expense
$
1,170,000
Fixed manufacturing expense
$
714,000
Variable selling and administrative expense
$
414,000
Fixed selling and administrative expense
$
82,000
Net operating income
$
32,000
The company's break-even in unit sales is closest to:
A) 118,806
B) 206,957
C) 346,087
D) 14,775
