1

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (6,500 units)	$442,000
Variable expenses	312,000
Contribution margin	130,000
Fixed expenses	103,500
Net operating income	$26,500

If the company sells 6,400 units, its net operating income should be closest to:

$26,500

$25,979

$22,000

$24,500

2

Maack Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $52,000. If the company's sales for a month are $315,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.

$206,300

$4,700

$263,000

$56,700

3

Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $346,800 and the variable expenses are 45% of sales. Given this information, the actual profit is: (Do not round your intermediate calculations.)

$92,480

$63,580

$17,340

$47,685

4

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit	$	340.00
Variable expense per unit	$	74.80
Fixed expense per month	$	176,280

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

$226,000

$275,720

$176,280

$452,000

5

Palomo Corporation sells a product for $190 per unit. The product's current sales are 13,000 units and its break-even sales are 11,050 units. The margin of safety as a percentage of sales is closest to:

82%

18%

85%

15%

6

Alpha Corporation reported the following data for its most recent year: sales, $640,000; variable expenses, $448,000; and fixed expenses, $128,000. The company's degree of operating leverage is:

10

4

3

3.3

7

Bianchini Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $ 38,000. Assume that the company's sales for May are expected to be $ 97,000.

Required:

Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

8

The contribution margin ratio of Donath Corporation's only product is 64%. The company's monthly fixed expense is $455,200 and the company's monthly target profit is $41,200.

Required:

Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)