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Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling $500 $210 $1,350,000 8,500 units Management is discussing increasing the price to $535 to cover an increase in fixed expenses of $81,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented? O A. Increase of $81,000 O B. Decrease of $81,000 OC. Increase of $161,250 OD. Decrease of $161,250 I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 17,000 gallons last year. For every five gallons of ice cream sold, one pound is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road. Fixed costs for Scream For Ice Cream are $27,500 and additional information follows: Sales price per pound Variable cost per pound Rocky Road $6.00 $5.50 Peanut Butter $6.75 $2.75 Fruity Tooty $5.50 $2.00 Breakeven sales in dollars for 1 Scream For Ice Cream is A. $55,000 OB. $68,200. O C. $88,000 OD. $40,700 Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 36,000 units at $8.00/unit. Below is a listing of estimated expenses: Category Materials Total Annual Expenses $10,000 $20,000 $45,000 $25,000 % of Annual Expense that are Fixed 10% 20% 30% 50% Labor Overhead Marketing/Admin A European firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. (Round intermediary dollar calculations to the nearest whole dollar and round percentages to one-tenth percent.) The margin of safety percentage for Curvy Confections is O A. 88.8% OB. 56%. O C. 119.2%. OD. 10.8%. Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $39,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,500,000 for the year. About 520,000 members are expected to swim each year. Variable costs are about $15 per swimmer. Philadelphia Swim Club is a price-taker and won't be able to charge more than its competitors who charge $41 for a membership. What profit will it earn as a percent of assets? O A. Profit of 2.62% O B. Loss of 2.62% O C. Loss of 52.05% OD. Profit of 32.05%