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

Sales (6,500 units)	$442,000
Variable expenses	312,000
Contribution margin	130,000
Fixed expenses	103,500
Net operating income	$26,500

If the company sells 6,400 units, its net operating income should be closest to:

$25,979

$22,000

$26,500

$24,500

7. Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$150	100%
Variable expenses	75	50%
Contribution margin	$ 75	50%

The company is currently selling 6,400 units per month. Fixed expenses are $424,400 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $3,900

Increase of $10,500

Decrease of $6,600

Decrease of $3,900

8. 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

9.Data concerning Cutshall Enterprises Corporation's single product appear below;

Selling price per unit	$	230.00
Variable expense per unit	$	98.50
Fixed expense per month	$	451,190

The unit sales to attain the company's monthly target profit of $33,000 is closest to: (Do not round your intermediate calculations.)

3,431

2,105

4,916

3,682

10. A cement manufacturer has supplied the following data;

Tons of cement produced and sold	260,000
Sales revenue	$964,000
Variable manufacturing expense	$229,000
Fixed manufacturing expense	$304,000
Variable selling and administrative expense	$108,400
Fixed selling and administrative expense	$90,000
Net operating income	$232,600

The company's contribution margin ratio is closest to:

44.7%

65.0%

68.5%

24.1%