1-

Blue Companys contribution margin ratio is 15%. If the degree of operating leverage is 12 at the $250,000 sales level, before-tax profit at the $250,000 sales level must equal:

$1,500

$1,875

$3,125

$2,700

2 -The following information pertains to Pellinos 2014 operations: Selling price per unit$100 Variable costs per unit$65 Total fixed costs$75,000 Tax rate40% Pellinos break-even point in sales dollars is:

	$133,333
	$214,286
	$500,000
	$333,333