1A

Assume the following information:

	Amount				Per Unit
Sales	$	300,000				$	40
Variable expenses		112,500					15
Contribution margin		187,500				$	25
Fixed expenses		34,000
Net operating income	$	153,500

The unit sales to attain a target profit of $213,000 is:

1B

Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,490, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be:

1C

Assume the following information:

	Amount				Per Unit
Sales	$	300,000				$	40
Variable expenses		112,500					15
Contribution margin		187,500				$	25
Fixed expenses		107,000
Net operating income	$	80,500

The dollar sales to break-even is:

1D

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 29%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?