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Questions -
Q1) Crane reported the following results from the sale of 5000 units in May: sales $200000, variable costs $80000, fixed costs $90000, and net income $30000. Assume that Crane increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income?
a. 4615.
b. 4063.
c. 5000.
d. 4750.
Q2) Coronado Industries had actual sales of $1000000 when break-even sales were $650000. What is the margin of safety ratio?
a. 65%
b. 46%
c. 54%
d. 35%
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