Chapter 05 – Cost-Volume-Profit Relationships
85. Shiraki Corporation produces and sells a single product. Data concerning that product
appear below:
The break-even in monthly dollar sales is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
86. Data concerning Carlo Corporation’s single product appear below:
The break-even in monthly dollar sales is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
87. Zumpano Inc. produces and sells a single product. The selling price of the product is
$170.00 per unit and its variable cost is $73.10 per unit. The fixed expense is $125,001 per
month.
The break-even in monthly dollar sales is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
88. The following information pertains to Clove Co.:
Clove’s margin of safety is:
89. Olis Corporation sells a product for $130 per unit. The product’s current sales are 28,900
units and its break-even sales are 25,721 units. What is the margin of safety in dollars?
Chapter 05 – Cost-Volume-Profit Relationships
90. Puchalla Corporation sells a product for $230 per unit. The product’s current sales are
13,400 units and its break-even sales are 10,720 units. The margin of safety as a percentage of
sales is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
91. Sturrock Corporation has provided the following data concerning its only product:
What is the margin of safety in dollars?
Chapter 05 – Cost-Volume-Profit Relationships
92. Victorin Corporation has provided the following data concerning its only product:
The margin of safety as a percentage of sales is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
93. Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the
selling price. If total fixed expenses are $30,000, the degree of operating leverage is:
Chapter 05 – Cost-Volume-Profit Relationships
94. At a sales level of $90,000, Blue Company’s contribution margin is $24,000. If the degree
of operating leverage is 6 at a $90,000 sales level, net operating income must equal:
95. The January contribution format income statement of Brotherton Corporation appears
below:
The degree of operating leverage is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
96. Lagasca Corporation’s contribution format income statement for December appears
below:
The degree of operating leverage is closest to:
97. Sperberg Corporation’s operating leverage is 3.7. If the company’s sales increase by 12%,
its net operating income should increase by about:
Chapter 05 – Cost-Volume-Profit Relationships
98. Tanigawa Inc. has an operating leverage of 8.7. If the company’s sales increase by 8%, its
net operating income should increase by about:
99. The following monthly data are available for the W.K. Kent Company:
The break-even sales for the month for the company are closest to:
Chapter 05 – Cost-Volume-Profit Relationships
100. Rickers Inc. produces and sells two products. Data concerning those products for the
most recent month appear below:
The fixed expenses of the entire company were $38,940. The break-even point for the entire
company is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
101. Balbuena Corporation produces and sells two products. Data concerning those products
for the most recent month appear below:
The fixed expenses of the entire company were $15,630. If the sales mix were to shift toward
Product K87W with total sales dollars remaining constant, the overall break-even point for the
entire company:
Chapter 05 – Cost-Volume-Profit Relationships
102. Mounts Corporation produces and sells two products. In the most recent month, Product
I05L had sales of $32,000 and variable expenses of $10,880. Product P42T had sales of
$45,000 and variable expenses of $18,380. And the fixed expenses of the entire company
were $46,070. The break-even point for the entire company is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
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103. Fjeld Corporation produces and sells two products. In the most recent month, Product
C66G had sales of $20,000 and variable expenses of $7,200. Product U11T had sales of
$19,000 and variable expenses of $8,400. And the fixed expenses of the entire company were
$21,740. If the sales mix were to shift toward Product C66G with total dollar sales remaining
constant, the overall break-even point for the entire company:
The following data pertain to Epsom Corporation’s operations:
Chapter 05 – Cost-Volume-Profit Relationships
104. The variable expense per unit is:
105. The break-even level in sales dollars is:
Chapter 05 – Cost-Volume-Profit Relationships
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106. Net operating income at sales of 12,000 units is:
Chapter 05 – Cost-Volume-Profit Relationships
A cement manufacturer has supplied the following data:
107. What is the company’s unit contribution margin?
Chapter 05 – Cost-Volume-Profit Relationships
108. The company’s contribution margin ratio is closest to:
Chapter 05 – Cost-Volume-Profit Relationships
5-80
109. 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 tile manufacturer has supplied the following data: