BT12203 BUSINESS ACCOUNTING SEMESTER 2 SESSION 2022/2023 TUTORIAL CHAPTER Z 1. A company has provided the following data: If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will: A. increase by $61,000. B. increase by $20,000. C. increase by $3,500. D. increase by $11,000. 2. Carver Company produces a product which sells for $30. Variable manufacturing costs are $15 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is: A. $3 B. $15 C. $8 D. $12 3. At a break-even point of 400 units sold, variable expenses were $4,000 and fixed expenses were $2,000. What will the 401 st unit sold contribute to profit? A. $0 B. $5 C. $10 D. $15 Use the following information for Questions 4 and 5: Doubleday Corporation produces and sells a single product. The company has provided its contribution format income statement for August. 1/4 4. If the company sells 3,000 units, its total contribution margin should be closest to: A. $20,813 B. $115,200 C. $96,600 D. $108,000 5. If the company sells 3,500 units, its net operating income should be closest to: A. $33,000 B. $24,281 C. $22,200 D. $50,100 Use the following information for Questions 6 and 7: Boening Enterprises, Inc., produces and sells a single product whose selling price is $130.00 per unit and whose variable expense is $39.00 per unit. The company's monthly fixed expense is $509,600. 6. Assume the company's monthly target profit is $11,000. The unit sales to attain that target profit is closest to: A. 7,692 B. 13,349 C. 4,005 D. 5,721 7. Assume the company's monthly target profit is $22,000. The dollar sales to attain that target profit is closest to: A. $1,021,010 B. $759,429 C. $1,772,000 D. $531,600 Use the following information for Questions 8 until 10: A manufacturer of tiling grout has supplied the following data: 5/4 8. The company's break-even in unit sales is closest to: A. 272,308 B. 98,333 C. 92,055 D. 60,488 9. The company's contribution margin ratio is closest to: A. 28.9% B. 63.9% C. 71.1% D. 36.1% 10. The company's degree of operating leverage is closest to: A. 9.77 B. 1.36 C. 3.53 D. 2.47 Use the following information for Questions 11 until 13: A company that makes organic fertilizer has supplied the following data: 11. The company's margin of safety in units is closest to: A. 115,128 B. 16,111 C. 168,986 D. 100,444 12. The company's unit contribution margin is closest to: A. $4.50 B. $6.90 C. $3.60 D. $4.20 13. The company's degree of operating leverage is closest to: A. 1.27 B. 26.90 C. 3.45 D. 12.41 3/4 Use the following information for Questions 14 and 15: Rosner Corporation sells a product for $150 per unit. The product's current sales are 32,500 units and its break-even sales are 24,050 units. 14. What is the margin of safety in dollars? A. $4,875,000 B. $3,607,500 C. $3,250,000 D. $1,267,500 15. The margin of safety as a percentage of sales is closest to: A. 65% B. 26% C. 74% D. 35%