5. Which of the following is an assumption underlying standard CVP analysis?

In multiproduct companies, the sales mix is constant. In manufacturing companies, inventories always change. The price of a product or service is expected to change as volume changes. Fixed expenses will change as volume increases.

6. Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.

If the company sells 4,600 units, its total contribution margin should be closest to:

$54,600 $59,800 $69,400 $13,362

7. Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November.

If the company sells 5,300 units, its net operating income should be closest to:

$24,600 $2,200 $22,874 $15,400

8. The Bronco Birdfeed Company reported the following information:

How much will the sale of one additional case add to Bronco's net operating income?

$250.00 $100.00 $150.00 $12.50

9. Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $95,000?

$12,800 $24,200 $53,200 $66,000

10. Borich Corporation produces and sells a single product. Data concerning that product appear below:

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

2,055 4,030 4,194 3,426