$17,000

$17,000

$21,250

$18,750

  Sales

2,825

  units

  Sales price

$ 77

  per unit

  Variable cost

$57

  per unit

  Fixed cost

$25,000

If the sales volume decreases by 20%, the variable cost per unit increases by 10%, and all other factors remain the same, net operating income will: (Do not round intermediate calculations.)

increase by $26,813.

decrease by $7,318.

decrease by $24,182.

decrease by $18,500

3) The following information relates to Clyde Corporation which produced and sold 41,000 units last month.

  Sales

$779,000

  Manufacturing costs:

  Fixed

$210,000

  Variable

$140,400

  Selling and administrative:

  Fixed

$300,000

  Variable

$ 44,100

There were no beginning or ending inventories. Production and sales next month are expected to be 31,000 units. The company's unit contribution margin next month should be: (Round your intermediate calculations and final answer to 2 decimal places)

$18.55

$3.90

$9.58

$14.50

4) Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.

  Sales (7,700 units)

$400,400

  Variable expenses

246,400

  Contribution margin

154,000

  Fixed expenses

103,500

  Net operating income

$ 50,500

If the company sells 7,600 units, its net operating income should be closest to:

$50,500

$46,000

$48,500

$49,979

5) The contribution margin ratio is 20% for Grain Company and the break-even point in sales is $244,000. To obtain a target net operating income of $82,000, sales would have to be: (Do not round intermediate calculations.)

$326,000

$325,600

$259,600

$654,000

6) Rothe Company manufactures and sells a single product that it sells for $100 per unit and has a contribution margin ratio of 45%. The company's fixed expenses are $47,400. If Rothe desires a monthly target net operating income equal to 25% of sales, the amount of sales in units will have to be: (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

1,256 units

3,237 units

810 units

2,370 units

Product X

Product Y

Product Z

  Sales in dollars

$24,000   

$44,000   

$104,000   

  Contribution margin ratio

49%

44%

19%

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.)

30%

47%

37%

it is impossible to determine from the data given.

8) Pool Company's variable expenses are 29% of sales. Pool is contemplating an advertising campaign that will cost $19,300. If sales increase by $79,300, the company's net operating income should increase by: (Do not round intermediate calculations.)

$37,003

$22,997

$9,843

$70,006

9) Data concerning Runnells Corporation's single product appear below:

Per Unit

Percent of Sales

  Selling price

$160   

100%    

  Variable expenses

80   

50%    

  Contribution margin

$ 80   

50%    

The company is currently selling 5,800 units per month. Fixed expenses are $407,600 per month. The marketing manager believes that a $6,800 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 would be closest to a(an):

Decrease of $6,800

Decrease of $2,000

Increase of $2,000

Increase of $8,800

10 ) Hirt Corporation sells its product for $9 per unit. Next year, fixed expenses are expected to be $500,000 and variable expenses are expected to be $5 per unit. How many units must the company sell to generate net operating income of $90,000?

100,000 units

183,556 units

118,000 units

147,500 units

11) At a sales level of $82,000, Blue Company's contribution margin is $32,000. If the degree of operating leverage is 5 at a $82,000 sales level, net operating income must equal:

$6,400

$25,600

$16,400

$10,000

12) The following data pertain to Epsom Corporation's operations:

  Unit sales

12,300 units        

  Selling price

$30 per unit    

  Contribution margin ratio

30%             

  Margin of safety percentage

20%             

The variable expense per unit is: (Do not round intermediate calculations.)

$9.00 per unit

$6.00 per unit

$21.00 per unit

$15.00 per unit

13) Bumpass Corporation's contribution margin ratio is 79% and its fixed monthly expenses are $ 48,000. Assume that the company's sales for July are expected to be $ 107,000.

Required:

Estimate the company's net operating income for July, assuming that the fixed monthly expenses do not change. (Omit the "$" sign in your response.)

  Net operating income

$

14) Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:

  Number of units produced

10,400

  Variable costs per unit:

  Direct materials

$110

  Direct labor

$99

  Variable manufacturing overhead

$7

  Variable selling and administrative expenses

$11

  Fixed costs:

  Fixed manufacturing overhead

$343,200

  Fixed selling and administrative expenses

$717,600

There were no beginning or ending inventories. The absorption costing unit product cost was:

15)A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

  Selling price

$157

  Units in beginning inventory

200

  Units produced

7,900

  Units sold

7,500

  Units in ending inventory

600

  Variable cost per unit:

  Direct materials

$47

  Direct labor

$45

  Variable manufacturing overhead

$7

  Variable selling and administrative

$5

  Fixed costs:

  Fixed manufacturing overhead

$260,700

  Fixed selling and administrative expenses

$120,000

What is the total period cost for the month under variable costing?

$260,700

$157,500

$380,700

$418,200