5

Palomo Corporation sells a product for $190 per unit. The product's current sales are 13,000 units and its break-even sales are 11,050 units. The margin of safety as a percentage of sales is closest to:

15%

85%

18%

82%

6Alpha Corporation reported the following data for its most recent year: sales, $640,000; variable expenses, $448,000; and fixed expenses, $128,000. The company's degree of operating leverage is:

10

4

3

3.3

7

Bianchini Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $ 38,000. Assume that the company's sales for May are expected to be $ 97,000.

Required:

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

The contribution margin ratio of Donath Corporation's only product is 64%. The company's monthly fixed expense is $455,200 and the company's monthly target profit is $41,200.

Required:

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