1 Q3 Spartan Systems reported total sales of $360,000, at a price of $50 and per unit variable expenses of $38, for the sales of their single product. |
| Total | Per Unit | |
| Sales | $360,000 | $50 |
| Variable expenses | 198,000 | 38 |
| Contribution margin | 162,000 | $12 |
| Fixed expenses | 112,000 | |
| Net operating income | $50,000 | |
What is the amount of contribution margin if sales volume increases by 40%?
$162,000$70,000$226,800$30,000
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1 Q7
|
Last year Easton Corporation reported sales of $790,000, a contribution margin ratio of 20% and a net loss of $31,000. Based on this information, the break-even point was: |
$635,000$1,100,000$821,000$945,000
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1 Q8
|
Dybala Corporation’s produces and sells a single product. Data concerning that product appear below: |
| Per Unit | Percent of Sales | |
| Selling price | $150 | 100% |
| Variable expenses |
60 |
40% |
| Contribution margin |
$ 90 |
60% |
|
The company is currently selling 6,100 units per month. Fixed expenses are $493,100 per month. The marketing manager believes that a $6,900 increase in the monthly advertising budget would result in a 110 unit increase in monthly sales. What should be the overall effect on the company’s monthly net operating income of this change? |
Decrease of $6,900Increase of $9,900Increase of $3,000Decrease of $3,000
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1 Q15
|
Hitchens Inc. produces and sells two products. Data concerning those products for the most recent month appear below: |
| Product V06Z | Product U85C | |
| Sales | $37,000 | $42,000 |
| Variable expenses | $12,500 | $28,580 |
|
The fixed expenses of the entire company were $39,090. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
$46,210$81,438$39,090$80,170
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1 Q18
|
Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below: |
| Sales (5,000 units) | $ | 320,000 |
| Variable expenses | 175,000 | |
| Contribution margin | 145,000 | |
| Fixed expenses | 106,300 | |
| Net operating income | $ | 38,700 |
| Required: | ||||||||||||||||||||||||||||||
|
Redo the company’s contribution format income statement assuming that the company sells 5,200 units. |
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1 Q19
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