2. Pool Company's variable costs aro 36% of sales. Pool is contemplating an advertising campaign that will cost $20,000. If sales are expected to increase $80,000, the company's net income will inerease by: a. $28,000. b. $64,000. c. $8,800. d. $31,200. 3. The followinginformation Rextains to Sisk Ca:t Sales(25,000units)DirectmaterialsandDirectlabor(botharevariahle)OtherVariableCostsFixedCosts$500,000150,00025,00065,000 Sisk's break-even point in number of units is: a. 4,924 . b. 5,000 . c. 6,250 . d. 9,286 4. Jack Co. can increase sales by 30% by spending $15,000 on advertising. If the contribution margin for Jack Co. is currently $70,000, the impact of this decision on net income would be: a. an increase of $6,000. b. a decrease of $12,000. c. a decrease of $1,200. d. net income would not change. 6. The president of Jones Co. believes that a 10% reduction in the selling price would increase sales volume by 50%. If both of these changes oecur, what would be the eficet on Jones' net ineome? a net income would increase by $4,000. b. net income would increase by 571,000 . c. net income would decresse by $4,000. d. net income would decrease by $71,000. 7. Refer to the original Income Statement above. What must Jones sales be to break even (in dollan)? a $135,000 b. 5110,000 c. $100,000 d. 5145,000 The followincifforretion for Boston Ca, eppllareacuentions sand2 Sales Contribution Margin Ratio Degree of Operating Levernge 51,000,00040%10 8. Use the three figures given above for Boston Co. and the formulas for Coatribution Margin Ratio and Degree of Operating Leverage to determine their current net income. a 560,000 c. 5100,000 b. $40,000 d. 5400,000 9. If Boston's sales increase by $50,000, net income for the company will ineresso by: a. 100% c. 50% b. 10% d. 5% Quention Orefirtechefollowing Henning Corporation produces and sells two models of hair dyens, Standard and Deluxe. The company has provided the following monthly date relating to these two products. Question 10 refers to the followeing: Henning Corporation produces and sells two models of hair dryers, Standard and Deluxe. The company has provided the following monthly data relating to these two products. Total monthly fixcd cost: $13,800 10. The break-even in units for the expected sales mix is (roundod): a. 200 and 400 units, respectively b. 400 and 800 units, respectively c. 100 and 200 units, respectively d. 200 and 300 units, rospectively