Reference no: EM13332125
1.)Parker Company has provided the following data for the most recent year: net operating income, $29,000; fixed expense, $125,000; sales, $220,000; and CM ratio, 70%.What is the company's degree of operating leverage? (Round your answer to 2 decimal places.)
2.)If sales increase from $430,000 to $485,040, and if the degree of operating leverage is 6.30, net operating income should increase by: (Do not round your intermediate calculations and round your final answer to 2 decimal places.)
3.)Herman Corp. has two products, A and B, with the following total sales and total variable costs:
Product A Product B
Sales $ 5,000 $ 20,000
Variable expenses $ 3,750 $ 18,750
What is the overall contribution margin ratio?
4.)Parker Company has provided the following data for the most recent year: net operating income, $33,150; fixed expense, $98,150; sales, $202,000; and CM ratio, 65%. The margin of safety in percentage form is: (Round your answer to 2 decimal places.)
40.59%.
15.35%.
25.25%.
74.75%.
5.)Parker Company has provided the following data for the most recent year: net operating income, $27,000; fixed expense, $87,000; sales, $190,000; and CM ratio, 60%. The company's margin of safety in dollars is:
$25,000.
$45,000.
$145,000.
$70,000.
6.)Assume that Dollar-town Toys has fixed costs of $145,530. Each unit generates variable costs of $.34 and sells for $1.00. What is the break-even point in units?
7.)Lester Company has a single product. The selling price is $50 and the variable cost is $29.50 per unit. The company's fixed expense is $209,100 per month. What is the company's break-even in sales dollars?
8.)Astair, Inc. reported sales of $8,424,000 for the month and incurred variable expenses totaling $5,800,000 and fixed expenses totaling $1,540,000. The company has no beginning or ending inventories. A total of 82,000 units were produced and sold last month. How many units would the company have to sell to achieve a desired profit of $1,340,000?
9.)Lester Company has a single product. The selling price is $50 and the variable cost is $25.50 per unit. The company's fixed expense is $290,000 per month. How many units would the company have to sell to attain target profits of $38,300?
10.)Redford, Inc. has provided the following data:
Selling Price $130 per unit
Sales 5,300 units
Fixed expenses $230,000
Variable cost $65 per unit
If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors remain the same, net operating income will:
11.)Parker Company has provided the following data for the most recent year: net operating income, $20,000; fixed expense, $52,000; sales, $120,000; and CM ratio, 60%. What is the company's total contribution margin?
$68,000
$98,000
$72,000
$120,000
12.)Lester Company has a single product. The selling price is $50 and the variable cost is $30.50 per unit. The company's fixed expense is $190,000 per month. What is the company's contribution margin ratio?
58.5%
19.5%
39.0%
61.0%
13.)Last month Carlos Company had a $60,000 profit on sales of $300,000. Fixed costs are $120,000 a month. What sales revenue is needed for Carlos to break even?
$360,000
$420,000
$200,000
$240,000
14.)Lester Company has a single product. The selling price is $50 and the variable cost is $30.50 per unit. The company's fixed expense is $190,000 per month. What is the company's unit contribution margin? (Round your answer to 2 decimal places.)
$80.50
$19.50
$30.50
$50.00
15.)Douglas Company sold 1,000 units of its product during the current month. The selling price is $58 and the variable cost is $34 per unit. The company's fixed expense totals $8,400 per month. The company's net operating income is:
$24,000.
$15,600.
$42,400.
$49,600.