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Answer the following FOUR independent questions (numbered 1 through 4). 1. Panda Company manufactures and sells a single product. Price and cost data regarding this

Answer the following FOUR independent questions (numbered 1 through 4).
1. Panda Company manufactures and sells a single product. Price and cost data regarding this product are given below. How many units need to be sold to earn an annual net operating income equal to 10% of sales? *
5 points
a-44,000 units
b-47,500 units
c-53,200 units
d-54,500 units
2. Mindy Corporation has reported sales of $640,000 last year, a contribution margin of $160,000, and a net loss of $40,000. Based on this information, what is the break-even point in dollar sales?
a-$480,000
b-$640,000
c-$800,000
d-$960,000
3. At a break-even point of 400 units sold, the variable expenses are $4,000, and the fixed expenses are $2,000. What will the 401st unit sold contribute to profit?
a-$0
b-$5
c-$10
d-$15
4. Jingo Company has reported $750,000 in sales (25,000 units) for last year with a net operating income of $25,000. At the break-even point, the company's total contribution margin equals $500,000. Based on this information, which of the following is correct? *
a-The contribution margin ratio is 40%.
b-The break-even point is 24,000 units.
c-The variable expenses are 60% of sales.
d-The variable expenses per unit are $9 per unit.
Multiple-Choice Questions (PART 2):
Use the below information to answer the following NINE questions (numbered 5 through 13).
This information is extracted from the financial records of Olin Company for last year.
5. What is the unit contribution margin?
a-$100 per unit
b-$250 per unit
c-$350 per unit
d-$600 per unit
6. What is the contribution margin ratio?
a-25%
b-33.33%
c-50%
d-75%
7. What is the net operating income for last year?
a-$800,000
b-$1,000,000
c-$1,800,000
d-$7,200,000
8. What is the break-even point in unit sales?
a-5,000 units
b-8,000 units
c-10,000 units
d-18,000 units
9. What is the break-even point in dollar sales?
a-$1,000,000
b-$1,800,000
c-$3,200,000
d-$7,200,000
10. What is the companys margin of safety in dollars?
a-$1,800,000
b-$2,200,000
c-$3,200,000
d-$4,000,000
11. What is the companys margin of safety in percentage terms?
a-25%
b-55.56%
c-75%
d-80%
12. How many units are to be sold to earn a target profit of $1,600,000?
a-6,400 units
b-16,000 units
c-18,000 units
d-24,000 units
13. What is the amount of dollar sales required to earn a target profit of $1,900,000?
a-$1,900,000
b-$7,200,000
c-$9,600,000
d-$10,800,000
Multiple-Choice Questions (PART 3):
Use the below information to answer the following FIVE questions (numbered 14 through 18).
Helena Company manufactures two products: Product P30 and Product P40. A contribution format income statement related to a recent month for the two products is given below.
14. What is the overall contribution margin ratio?
a-35%
b-40%
c-60%
d-65%
15. What is the overall break-even point for the company in sales dollars?
a-$240,000
b-$540,000
c-$600,000
d-$1,350,000
16. What is the amount of relative sales dollars for product P30 at the break-even point?
a-$360,000
b-$390,000
c-$877,500
d-$1,350,000
17. What is the amount of relative sales dollars for product P40 at the break-even point?
a-$210,000
b-$240,000
c-$472,500
d-$1,350,000
18. What is the total contribution margin at the break-even point?
a-$240,000
b-$540,000
c-$300,000
d-$600,000
Multiple-Choice Questions (PART 4):
Use the below information to answer the following TWO questions (numbered 19 and 20).
The given contribution format income statement pertains to Nisar Company for February 2020.
19. What is the degree of operating leverage?
a-2
b-3
c-7
d-10
20. What is the percent change in net operating income that will result from a 10% decrease in sales, using the degree of operating leverage?
a-10% decrease
b-20% decrease
c-20% increase
d-30% decrease

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