1) Idaho Corp. has fixed costs of $56,000 and a contribution margin ratio of 40%. Currently, sales are $224,000. What is Idaho's margin of safety?

Multiple Choice

• $168,000

• $63,000

• $105,000

2) Megan, Inc. has fixed costs of $445,000, sales price of $46, and variable cost of $37 per unit. How many units must be sold to earn profit of $63,500?

Multiple Choice

• 1,380

• 8,436

• 49,444

• 56,500

3) Frontier Corp. has fixed costs of $477,480 and profit of $276,000. What is its degree of operating leverage?

Multiple Choice

• 0.58

• 1.15

• 2.73

• 1.00

4) Thunder Corp. has a selling price of $30 per unit, variable costs of $23 per unit, and fixed costs of $357,140. How many units must be sold to break even?

Multiple Choice

• 102,040

• 22,321

• 51,02

5) Munoz Inc. has a contribution margin ratio of 44% and fixed costs of $130,680. What sales revenue is needed to generate a $83,160 profit?

Multiple Choice

• $65,000

• $381,857

• $486,000

• $290,000