1. ABC Company estimates the following data for the coming month
Total variable costs	$40,000.00
Income tax rate	40%
Contribution margin percentage	50%
Estimated net income	$6,000.00

Find the estimated total contribution margin

	a.	Between 0 and $20,000.00
	b.	Between $20,000.00 and $40,001.00
	c.	Between $40,001.00 and $60,000.00
	d.	Between $60,000 and 80,001.00

2. ABC Company estimates the following data for the coming month
Total variable costs	60,000.00
Income tax rate	20%
Contribution margin percentage	40%
Estimated net income	$10,000.00

Find the estimated total fixed costs for the coming month

	a.	Between 0 and $20,000.00
	b.	Between $20,000.00 and $30,001.00
	c.	Between $30,001.00 and $40,000.00
	d.	Between $60,000 and 80,001.00
3. Assume the following cost data relate to the decision to produce
Total units expected to be produced or bought from the market				10,000
			Total Costs	Unit Cost
Rental of equipment			$12,000	$1.20
Equip. depreciation			2,000	$0.20
Direct materials			9,000	0.90
Direct labor			15,000	1.50
Variable overhead			6,000	0.60
Fixed overhead (non-avoidable)			24000	2.40
Total			$68,000	$6.80
Purchase cost			44,000	$4.40

Should the company acquire the product form the market

4. ABC Company estimates the following data for the coming month
Total variable costs	?$??? 35,000.00
Income tax rate	25%
Contribution margin percentage	40%
Estimated monthly operating? fixed costs	$16,000.00
Required minimum net income as percentage of total sales	10%

Find the excess amount of operating income over required minimum.

5. Tany Company has the following data
Account Receivable
December-31-2005	$90,000.00
January-30-2006	$120,000.00
Sales during
December 2005	x
January 2006	y
Sales collections
During the month of sales	40%
Next month of sales	60%
Normally there is no bad debt

Find sales during January 2006