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 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

a. Increase of $15,750

b. Decrease of $7,200

c. Decrease of $8,550

d. Increase of $8,550

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

Selling price per unit	$	220.00
Variable expense per unit	$	97.50
Fixed expense per month	$	448,090

The unit sales to attain the company's monthly target profit of $31,000 is closest to: (Do not round your intermediate calculations.)

a. 3,658

b. 2,178

c. 4,914

d. 3,911

10. A cement manufacturer has supplied the following data:

Tons of cement produced and sold	255,000
Sales revenue	$959,000
Variable manufacturing expense	$228,000
Fixed manufacturing expense	$301,000
Variable selling and administrative expense	$136,420
Fixed selling and administrative expense	$89,000
Net operating income	$204,580

The company's contribution margin ratio is closest to:

a. 44.8%

b. 62.0%

c. 68.6%

d. 21.3%

12. The contribution margin ratio of Donath Corporation's only product is 75%. The company's monthly fixed expense is $456,000 and the company's monthly target profit is $42,000.

Required: Determine the dollar sales to attain the company's target profit.(round to nearest dollar amount)