1). James Company has a margin of safety percentage of 20% based on its actual sales. The break-even point is $170,000 and the variable expenses are 50% of sales. Given this information, the actual profit is: (Do not round intermediate calculations.)

	$17,000
	$17,000
	$21,250
	$18,750

2) A company has provided the following data:

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

7) Darth Company sells three products. Sales and contribution margin ratios for the three products follow:

	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:

$209

$249

$216

$329

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