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	90	60%
Contribution margin	$ 60	40%

The company is currently selling 5,000 units per month. Fixed expenses are $242,800 per month. The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $5,400

Decrease of $6,000

Increase of $11,400

Decrease of $5,400

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

Selling price per unit	$	250.00
Variable expense per unit	$	77.50
Fixed expense per month	$	149,730

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

$217,000

$284,270

$149,730

$434,000

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

Selling price per unit	$	185.00
Variable expense per unit	$	94.00
Fixed expense per month	$	437,240

The unit sales to attain the company's monthly target profit of $24,000 is closest to: (Do not round your intermediate calculations.)

4,805

2,493

4,907

5,069

10. A cement manufacturer has supplied the following data:

Tons of cement produced and sold	245,000
Sales revenue	$949,000
Variable manufacturing expense	$226,000
Fixed manufacturing expense	$295,000
Variable selling and administrative expense	$153,600
Fixed selling and administrative expense	$87,000
Net operating income	$187,400

The company's contribution margin ratio is closest to:

45.1%

60.0%

68.9%

19.7%