1) Florek Inc. produces and sells a single product. The company has provided its contribution format income statement for March.

Sales (6,500)	$292,500
Variable Expenses	$195,000
___________________	____________
Contribution Margin	97,500
Fixed Expenses	88,200
___________________	____________
Net Operating Income	$9,300
___________________	____________

If the company sells 6,700 units, its net operating income should be closest to:

a) $9,300

b) $12,300

c) $18,300

d) $9,586

2) Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $366,000 and the variable expenses are 45% of sales. Given this information, the actual profit is:

a) $50,325

b) $18,300

c) 97,600

d) $67,100

3) Data concerning Wang Corporation's single product appear below:

Selling Price Per Unit	$240
Variable Expense Per Unit	$76.80
Fixed Expense Per Month	$146,880

The break-even in monthly dollar sales is closest to:

a) $216,000

b) $146,880

c) $432,000

d) $285,120

4) The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $29,000. If sales increase by $86,000, the company's net operating income will increase by:

a) $74,750

b) $26,900

c) $1,100

d) $30,100

5) Minist Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $260,000 and its net operating income was $17,000. If fixed expenses totaled $87,000 for the year, the break-even point in unit sales was:

a) 7,800

b) 10,875

c) 13,000

d) 13,850