1Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (7,900 units)	$426,600
Variable expenses	268,600
Contribution margin	158,000
Fixed expenses	103,500
Net operating income	$54,500

If the company sells 7,800 units, its net operating income should be closest to:

$54,500

$50,000

$53,979

$52,500

2

Maack Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $49,500. If the company's sales for a month are $310,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.

$201,600

$9,400

$260,500

$58,900

3Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $248,400 and the variable expenses are 45% of sales. Given this information, the actual profit is: (Do not round your intermediate calculations.)

$66,240

$45,540

$12,420

$34,155

4

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

Selling price per unit	$	290.00
Variable expense per unit	$	78.30
Fixed expense per month	$	161,330

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

$221,000

$280,670

$161,330

$442,000

5

Palomo Corporation sells a product for $210 per unit. The product's current sales are 13,200 units and its break-even sales are 10,956 units. The margin of safety as a percentage of sales is closest to:

80%

17%

20%

83%

6Alpha Corporation reported the following data for its most recent year: sales, $520,000; variable expenses, $320,000; and fixed expenses, $150,000. The company's degree of operating leverage is:

10

2

4

2.6

7Bianchini Corporation's contribution margin ratio is 75% and its fixed monthly expenses are $ 44,000. Assume that the company's sales for May are expected to be $ 103,000.

Required:

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

8The contribution margin ratio of Donath Corporation's only product is 60%. The company's monthly fixed expense is $455,700 and the company's monthly target profit is $41,700.

Required:

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