188) Data concerning Sinisi Corporation’s single product appear below:
Selling price per unit
$
200.00
Variable expense per unit
$
58.00
Fixed expense per month
$
407,540
The break-even in monthly dollar sales is closest to:
A) $407,600
B) $1,405,400
C) $574,000
D) $795,600
189) Zanetti Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
110.00
Variable expense per unit
$
34.10
Fixed expense per month
$
132,066
The break-even in monthly unit sales is closest to:
A) 3,873 units
B) 1,740 units
C) 1,201 units
D) 2,271 units
190) Zanetti Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
110.00
Variable expense per unit
$
34.10
Fixed expense per month
$
132,066
The break-even in monthly dollar sales is closest to:
A) $191,400
B) $249,810
C) $426,030
D) $132,110
191) Junior Bodway, Inc., has provided the following budgeted data:
Sales
10,000
units
Selling price
$
50
per unit
Variable expense
$
30
per unit
Fixed expense
$
180,000
What is the company’s break-even point in sales dollars?
A) $450,000
B) $180,000
C) $300,000
D) $500,000
192) Junior Bodway, Inc., has provided the following budgeted data:
Sales
10,000
units
Selling price
$
50
per unit
Variable expense
$
30
per unit
Fixed expense
$
180,000
How many units would the company have to sell in order to have a net operating income of
$40,000?
A) 20,000 units
B) 9,000 units
C) 11,000 units
D) 7,333 units
193) Junior Bodway, Inc., has provided the following budgeted data:
Sales
10,000
units
Selling price
$
50
per unit
Variable expense
$
30
per unit
Fixed expense
$
180,000
At the budgeted sales level of 10,000 units, what is the company’s degree of operating leverage?
A) 10.0
B) 6.0
C) 22.5
D) 5.0
Sales ($50 per unit × 10,000 units)
Variable expenses ($30 per unit × 10,000 units)
Contribution margin
Fixed expenses
Net operating income
194) Maziarz Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
220.00
Variable expense per unit
72.60
Fixed expense per month
$
548,328
Assume the company’s target profit is $14,000. The unit sales to attain that target profit is closest
to:
A) 7,746 units
B) 2,556 units
C) 4,706 units
D) 3,815 units
195) Maziarz Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit
$
220.00
Variable expense per unit
72.60
Fixed expense per month
$
548,328
Assume the company’s target profit is $16,000. The dollar sales to attain that target profit is
closest to:
A) $564,328
B) $1,710,085
C) $1,038,898
D) $842,281
196) Speckman Enterprises, Inc., produces and sells a single product whose selling price is
$200.00 per unit and whose variable expense is $68.00 per unit. The company’s monthly fixed
expense is $514,800.
Assume the company’s target profit is $11,000. The unit sales to attain that target profit is closest
to:
A) 2,629 units
B) 3,983 units
C) 4,781 units
D) 7,732 units
197) Speckman Enterprises, Inc., produces and sells a single product whose selling price is
$200.00 per unit and whose variable expense is $68.00 per unit. The company’s monthly fixed
expense is $514,800.
Assume the company’s target profit is $12,000. The dollar sales to attain that target profit is
closest to:
A) $1,549,412
B) $798,182
C) $526,800
D) $958,131
198) Data concerning Strite Corporation’s single product appear below:
Selling price per unit
$
150.00
Variable expense per unit
42.00
Fixed expense per month
$
421,200
Assume the company’s target profit is $17,000. The unit sales to attain that target profit is closest
to:
A) 5,804 units
B) 2,921 units
C) 4,057 units
D) 10,433 units
199) Data concerning Strite Corporation’s single product appear below:
Selling price per unit
$
150.00
Variable expense per unit
42.00
Fixed expense per month
$
421,200
Assume the company’s target profit is $8,000. The dollar sales to attain that target profit is
closest to:
A) $596,111
B) $1,532,857
C) $852,723
D) $429,200
200) Highjinks, Inc., has provided the following budgeted data:
Sales
20,000
units
Selling price
$
100
per unit
Variable expense
$
70
per unit
Fixed expense
$
450,000
What is the company’s margin of safety as a percentage of sales?
A) 50%
B) 25%
C) 75%
D) 100%
201) Highjinks, Inc., has provided the following budgeted data:
Sales
20,000
units
Selling price
$
100
per unit
Variable expense
$
70
per unit
Fixed expense
$
450,000
How many units would the company have to sell in order to have a net operating income equal to
5% of total sales dollars?
A) 18,000 units
B) 20,000 units
C) 15,333 units
D) 14,286 units
202) Jerrel Corporation sells a product for $230 per unit. The product’s current sales are 24,000
units and its break-even sales are 17,280 units.
What is the margin of safety in dollars?
A) $5,520,000
B) $1,545,600
C) $3,974,400
D) $3,680,000
203) Jerrel Corporation sells a product for $230 per unit. The product’s current sales are 24,000
units and its break-even sales are 17,280 units.
The margin of safety as a percentage of sales is closest to:
A) 61%
B) 28%
C) 72%
D) 39%
204) Maruska Corporation has provided the following data concerning its only product:
Selling price
$
180
per unit
Current sales
29,800
units
Break-even sales
25,032
units
What is the margin of safety in dollars?
A) $4,505,760
B) $858,240
C) $3,576,000
D) $5,364,000
Sales ($180 per unit × 29,800 units)
Break-even sales ($180 per unit × 25,032 units)
Margin of safety (in dollars)
858,240
205) Maruska Corporation has provided the following data concerning its only product:
Selling price
$
180
per unit
Current sales
29,800
units
Break-even sales
25,032
units
The margin of safety as a percentage of sales is closest to:
A) 19%
B) 16%
C) 84%
D) 81%
Sales ($180 per unit × 29,800 units)
Break-even sales ($180 per unit × 25,032 units)
Margin of safety (in dollars)
858,240
206) Bois Corporation has provided its contribution format income statement for January.
Sales
$
426,400
Variable expenses
260,000
Contribution margin
166,400
Fixed expenses
120,900
Net operating income
$
45,500
The degree of operating leverage is closest to:
A) 0.11
B) 9.37
C) 0.27
D) 3.66
207) Bois Corporation has provided its contribution format income statement for January.
Sales
$
426,400
Variable expenses
260,000
Contribution margin
166,400
Fixed expenses
120,900
Net operating income
$
45,500
If the company’s sales increase by 7%, its net operating income should increase by about:
A) 26%
B) 7%
C) 66%
D) 11%