10. A.

1. If fixed costs are $287,000, the unit selling price is $71, and the unit variable costs are $55, what are the old and new break-even sales (units) if the unit selling price increases by $6?

   a. 5,218 units and 12,545 units

   b. 17,938 units and 13,045 units

   c. 4,042 units and 17,938 units

   d. 17,938 units and 4,042 units

10. B.

1. If the contribution margin ratio for France Company is 42%, sales were $418,000, and fixed costs were $94,000, what was the income from operations?

   a. $94,000

   b. $65,248

   c. $175,560

   d. $81,560

10. C.

1. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of businessSeptember, October, and Novemberare $232,000, $318,000, and $408,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

   The cash collections expected in November from accounts receivable are projected to be:

   a. $327,600

   b. $273,000

   c. $228,480

   d. $183,960