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Sperberg Corporation's operating leverage is 5.4. If the company's sales increase by 12%, its net
operating income should increase by about:
12.0%
2.2%
51.2%
64.8%
Dimitrov Corporation, a company that produces and sells a single product, has provided
its contribution format income statement for July.
Sales (6,300 units) $415,800
Variable expenses 289,800
Contribution margin 126,000
Fixed expenses 103,500
Net operating income $ 22,500
If the company sells 6,200 units, its net operating income should be
closest to:
$22,500
$18,000
$21,979
$20,500
The following data pertain to last month's operations:
Selling price $ 35
per
unit
Variable production cost $ 19
per
unit
Fixed production cost $78,000
Variable selling & admin.
expenses
$ 9
per
unit
Fixed selling & admin. expenses $37,000
The break-even point in dollars is: (Do not round intermediate calculations.)
$253,000
$193,000
$156,000
$575,000
A cement manufacturer has supplied the following data:
Tons of cement produced and sold
245,000
Sales revenue $1,078,000
Variable manufacturing expense $424,000
Fixed manufacturing expense $283,000
Variable selling and administrative
expense
$66,000
Fixed selling and administrative expense $223,000
Net operating income $82,000
What is the company's unit contribution margin?
03_14_2012
$2.00
$.42
$2.40
$4.40
Product O66C Product V67G
Sales $28,000 $33,000
Variable expenses $11,600 $23,170
The fixed expenses of the entire company were $39,180. The break-even point in sales dollars for the
entire company is closest to: (Round your intermediate calculations to 2 decimal places and final
answer to the nearest dollar amount.)
$39,180
$73,950
$46,300
$91,116
Mounts Corporation produces and sells two products. In the most recent month, Product I05L
had sales of $22,000 and variable expenses of $10,060. Product P42T had sales of $35,000
and variable expenses of $17,300. And the fixed expenses of the entire company were $45,970. The
break-even point in sales dollars for the entire company is closest to: (Round your
intermediate calculations to 2 decimal places and final answers to the nearest
dollar amount.)
$45,970
$73,330
$88,364
$88,404
Rickers Inc. produces and sells two products. Data concerning those products for the most recent month
appear below:
The following data pertain to Epsom Corporation's operations:
Unit sales 14,200 units
Selling price $50 per unit
Contribution margin ratio 30%
Margin of safety
percentage
20%
The variable expense per unit is: (Do not round intermediate calculations.)
$15.00 per unit
$25.00 per unit
$35.00 per unit
$10.00 per unit
At a sales level of $98,000, Blue Company's contribution margin is $16,000. If the degree
of operating leverage is 5 at a $98,000 sales level, net operating income must equal:
$3,200
$12,800
$16,400
$19,600
The following information relates to Clyde Corporation which produced
and sold 57,000 units last month.
Sales
$1,368,000
Manufacturing costs:
Fixed $210,000
Variable $205,100
Selling and administrative:
Fixed $300,000
Variable $ 45,700
There were no beginning or ending inventories. Production and sales next month are
expected to be 47,000 units. The company's unit contribution margin next month should
be: (Round your intermediate calculations and final answer to 2 decimal places)
$9.38
$19.60
$23.56
$3.80
Darth Company sells three products. Sales and contribution margin ratios for the
three products follow:
Product X Product Y Product Z
Sales in dollars $29,000 $49,000 $109,000
Contribution margin
ratio
54% 49% 24%
Given these data, the contribution margin ratio for the company as a whole would be:
(Round your intermediate calculations to 2 decimal places. Round your answer to
whole percentage.)
35%
52%
42%
it is impossible to determine from the data given.