1.

Liddell Corporation's contribution margin ratio is 62% and its fixed monthly expenses are $91,000. Assume that the company's sales for May are expected to be $193,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

2.

McGregor Corporation produces and sells a single product. Data concerning that product appears below. Required: a. Calculate the contribution margin per unit and the contribution margin ratio. b. Determine the monthly break-even in total dollar sales and unit sales.

Selling price per unit $160 Variable expense per unit $70.40 Fixed expense per month $153,216

3.

Khabib Corporation produces and sells a single product. Data concerning that product appears below. Required: a. Calculate the contribution margin per unit and the contribution margin ratio. b. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit. c. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit.

Selling price per unit $230 Variable expense per unit $103.50 Fixed expense per month $518,650

4.

Rousy Corporation's only product sells for $110 per unit. Its current sales are 35,600 units and its break-even sales are 29,192 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.