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The contribution margin ratio is equal to:
1 − (Contribution Margin/Sales).
Total manufacturing expenses/Sales.
1 − (Gross Margin/Sales).
(Sales − Variable expenses)/Sales.
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Moccio Enterprises, Inc., produces and sells a single product whose selling price is $120.00 per unit and whose variable expense is $37.20 per unit. The company's monthly fixed expense is $356,040.
Assume the company's target profit is $15,000. The dollar sales to attain that target profit is closest to:
$1,196,903
$701,894
$537,739
$371,040
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Florek Inc. produces and sells a single product. The company has provided its contribution format income statement for March.
|
|
Sales (6,000 units)
|
$
|
330,000
|
|
Variable expenses
|
|
210,000
|
| |
|
|
|
Contribution margin
|
|
120,000
|
|
Fixed expenses
|
|
87,500
|
| |
|
|
|
Net operating income
|
$
|
32,500
|
| |
|
|
If the company sells 6,200 units, its net operating income should be closest to:
$32,500
$43,500
$33,583
$36,500
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Data concerning Cutshall Enterprises Corporation's single product appear below:
|
Selling price per unit
|
$
|
190.00
|
|
Variable expense per unit
|
$
|
94.50
|
|
Fixed expense per month
|
$
|
438,790
|
|
The unit sales to attain the company's monthly target profit of $25,000 is closest to: (Do not round your intermediate calculations.)
|
4,595
4,908
4,856
2,441
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Brees Inc., a company that produces and sells a single product, has provided its contribution format income statement for April.
|
Sales (6,200 units)
|
$136,400
|
|
Variable expenses
|
80,600
|
|
Contribution margin
|
55,800
|
|
Fixed expenses
|
48,700
|
|
Net operating income
|
$7,100
|
If the company sells 5,800 units, its total contribution margin should be closest to:
$52,200
$47,000
$55,800
$6,642
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Data concerning Matsumoto Corporation's single product appear below:
|
Selling price per unit
|
$130.00
|
|
Variable expense per unit
|
$52.00
|
|
Fixed expense per month
|
$280,800
|
Assume the company's target profit is $5,000. The unit sales to attain that target profit is closest to:
5,496 units
2,198 units
3,664 units
3,786 units
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|
Spartan Systems reported total sales of $325,000, at a price of $45 and per unit variable expenses of $32, for the sales of their single product.
|
| |
Total
|
Per Unit
|
|
Sales
|
$325,000
|
$45
|
|
Variable expenses
|
195,000
|
32
|
| |
|
|
|
Contribution margin
|
130,000
|
$13
|
| |
|
|
|
Fixed expenses
|
105,000
|
|
| |
|
|
|
Net operating income
|
$25,000
|
|
| |
|
|
What is the amount of contribution margin if sales volume increases by 30%?
$130,000
$32,500
$17,500
$169,000
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A manufacturer of cedar shingles has supplied the following data:
|
Bundles of cedar shakes produced and sold
|
280,000
|
|
Sales revenue
|
$2,072,000
|
|
Variable manufacturing expense
|
$1,134,000
|
|
Fixed manufacturing expense
|
$436,000
|
|
Variable selling and administrative expense
|
$238,000
|
|
Fixed selling and administrative expense
|
$164,000
|
|
Net operating income
|
$100,000
|
The company's break-even in unit sales is closest to:
240,000
25,038
81,081
130,149
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Data concerning Wythe Corporation's single product appear below:
| |
Per Unit
|
Percent of Sales
|
|
Selling price
|
$150
|
100%
|
|
Variable expenses
|
90
|
60%
|
|
Contribution margin
|
$60
|
40%
|
Fixed expenses are $106,000 per month. The company is currently selling 2,000 units per month. The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $5,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change?
increase of $31,000
increase of $103,000
increase of $1,000
decrease of $31,000
-----------------
Lore Corporation has provided the following information:
|
Sales
|
$200,000
|
|
Variable expenses
|
$40,000
|
|
Fixed expenses
|
$10,000
|
Lore's break-even point in dollar sales is:
$12,500
$40,000
$10,000
$50,000
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The records of the Dodge Corporation show the following results for the most recent year:
|
Sales (16,000 units)
|
$256,000
|
|
Variable expenses
|
$160,000
|
|
Net operating income
|
$32,000
|
Given these data, the unit contribution margin was:
$16
$6
$4
$2
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The following monthly data are available for the Wyatt Corporation and its only product:
|
Unit selling price
|
$36
|
|
|
Unit variable expenses
|
$28
|
|
|
Total fixed expenses
|
$50,000
|
|
|
Actual sales for the month of May
|
7,000
|
units
|
The margin of safety for the company during May was:
$27,000
$56,000
$6,000
$106,000
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|
Darwin Inc. sells a particular textbook for $32. Variable expenses are $24 per book. At the current volume of 56,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
|
$2,240,000
$1,344,000
$1,792,000
$448,000
|