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QUESTION 1
The contribution margin ratio of Thronson Corporation's only product is 60%. The company's monthly fixed expense is $456,600 and the company's monthly target profit is $42,600.
Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
QUESTION 2
Puchalla Corporation sells a product for $160 per unit. The product's current sales are 12,700 units and its break-even sales are 11,176 units. The margin of safety as a percentage of sales is closest to:
14%
88%
86%
12%
QUESTION 3
Kendall Company has sales of 1,600 units at $50 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $48,000, the degree of operating leverage is:
rev: 03_06_2012
7.00
3.00
10.00
3.17
QUESTION 4
Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $31,500 and variable expenses of $8,540. Product V04P had sales of $52,500 and variable expenses of $36,820. The fixed expenses of the entire company were $35,680.
The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
$84,000
$77,565
$35,680
$32,09
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