Reference no: EM131518435

Questions: 1. Alpha Corporation reported the following data for its most recent year: sales, $610,000; variable expenses, $305,000; and fixed expenses, $244,000. The company's degree of operating leverage is:
rev: 02_03_2015_QC_CS-6368

a.1

b. 5

c. 2.0

d. 10

2. Sperberg Corporation's operating leverage is 4.1. If the company's sales increase by 13%, its net operating income should increase by about:

a. 13.0%

b. 3.2%

c. 53.3%

d. 38.7%

3. Minist Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $225,000 and its net operating income was $38,500. If fixed expenses totaled $74,000 for the year, the break-even point in unit sales was:

a. 11,250

b. 13,175

c. 5,625

d. 7,400

4. Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $40,000 and variable expenses of $11,680. Product P42T had sales of $53,000 and variable expenses of $16,220. The fixed expenses of the entire company were $46,150. 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.)

a. $74,050

b. $65,889

c. $46,150

d. $65,929

5. Puchalla Corporation sells a product for $130 per unit. The product's current sales are 12,400 units and its break-even sales are 11,036 units. The margin of safety as a percentage of sales is closest to:

a. 88%

b. 12%

c. 11%

d. 89%