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Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 32%, and (4) net operating income =

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 32%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

  • The total fixed expenses = $54,000

  • The break-even point is 8,611 units

  • The total contribution margin = $136,000

  • The total variable expenses = $64,000

Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,610, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be:

Multiple Choice

  • $40,250.

  • $6,320.

  • $27,610.

  • $8,930.

Assume the following (1) variable expenses = $280,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

  • The total sales = $350,000

  • The variable expense ratio is 400%

  • The total contribution margin = $224,000

  • The total fixed expenses = $56,000

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