Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 5:2:2 mix (thus, a batch of 9 towels has 5 bath towels, 2 hand towels, and 2 washcloths). Each bath towel sells for $11 and costs $5, each hand towel sells for $7 and costs $4; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $327,000, and the income tax rate, t is 20%. How many bath towels m ust the firm sell at the breakeven point? (Round per-unit amounts to 2 decimal places; round other intermediate calculations to nearest whole dollars.) Multiple Choice 86,956 49,956. 56,956 41,956 25,956. 2 Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent 100.00 63.85 35.96 Sales price Variable costs $520 332 Unit contribution margin $187 Assume that Staley Co. is currently selling 640 computer monitors per month and monthly fixed costs are $80.400. What is Staley Co.'s margin of safety (MOS), in units, if 640 units are sold and all costs and revenues are as budgeted? Round intermediate calculation up to nearest whole number of units) 2 Multiple Choice 215 210. 228 329 301 Cleaning Care Inc. expects to sell 13,000 mops.Fixed costs (for the year) are expected to be $9,000, unit sales price is expected to be $11, and unit variable costs are budgeted at $7 Cleaning Care's margin of safety ratio (MOS %) is: 3 Multiple Choice 042% 17%. 88%. 83%. 93%. 4 During the current year, OutlyTech Corp. expected to sell 24,400 telephone switches. Fixed costs for the year were expected to be $12,146,000, the unit sales price was budgeted at $3,400, and unit variable costs were budgeted at $1,600. OutyTech's margin of safety ratio (MOS %) is: (Do not round intermediate calculations.) 4 Multiple Choice 93.59%. 72.34%. 71.34%. 77.24%. 88.09%. 5 Kelvin Co. produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for the year are expected to total $140,000. The selling price is expected to be $4 per pair The sales units required for Kelvin Co. to make an after-tax profit (ra) of $21,000, given an income tax rate of 40%, are: 5 Multiple Choice 86,500 units. 77,500 units. 87,500 units 95,661 units. 90,000 units. During the current year, OutlyTech Corp. expected to sell 24,400 telephone switches. Fixed costs for the year were expected to be $12,146,000, the unit sales price was budgeted at $3,400, and unit variable costs were budgeted at $1,600. OutlyTech's margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations. 6 Multiple Choice 63,017425. $81,874,556. 60,017556. $92,814,556 $72,197,556 7 n the current year, Becker Sofa Company expected to sell 11,600 leather sofas. Fixed costs for the year were expected to be $8,401,000; unit sales price was budgeted at $4,300; and unit variable costs were expected to be $2,050 Becker Sofa Company's margin of safety (MOS) in units is 7 Multiple Choice 7866 8,466 9,266 7,366 8,166. Cleaning Care Inc. expects to sell 9,000 mops. Fixed costs (for the year) are expected to be $11,000, unit sales price is expected to be $14, and unit variable costs are budgeted at $6. Cleaning Care's margin of safety (MOS) in units is 8 Multiple Choice 8,625. O 375 O 1375 3,813. 625 9 Hart Company sold 5,000 units for a price of $50 per unit and had the following information: Variable expenses Fixed expenses Breakeven sales point $169,000 $117,000 $356,222 If the sales price per unit were to increase by 10%, variable expenses were to increase by 12.5%, and fixed expenses were to increase by 20%, what would be the new contribution margin per unit? 9 Multiple Choice $20.97 $16.97 $22.97 $29.97 $18.97 n the current year, Becker Sofa Company expected to sell 12,500 leather sofas. Fixed costs for the year were expected to be $8,402,500; unit sales price was budgeted at $4,850; and unit variable costs were expected to be $2,450 Becker Sofa Company's margin of safety ratio (MOS %) is (rounded to two decimal places): (Do not round intermediate calculations.) Multiple Choice 79.14%. 72.45%. 74.51%. 80.43%. 71 99%, Kelvin Co. produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for the year are expected to total $140,000. The selling price is expected to be $4 per pair. The sales dollars required to make an after-tax profit (r) for Kelvin Co. of $21,000, given an income tax rate of 50%, are calculated to be: Multiple Choice $361,000. $364,000. $358,000 $355,000 $379,000. Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other western wear stores. Also, because of the rapid growth in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople $75.00 Sales price Per-unit variable costs Invoice cost Sales commissions 45.15 4.85 50.00 Total per-unit variable costs Total annual fixed costs: Advertising Rent Salaries 26,600 36,500 129,900 193,000 Total fixed costs The annual breakeven point in dollar sales is calculated to be: (Do not round intermediate calculations.) Multiple Choice $615,000. $579,000. $543,000. $507,000 Label Corp. recorded sales of $2,234,985 for the most recent year. The company's breakeven sales point (in dollars) is $1,660,000, and its margin of safety ratio (MOS%) at the current sales level is 24%. What sales (n dollars) would be needed to increase the company's MOS% to 32%? Multiple Choice $2,712,526 $2,803,936. $2,056,886. 2,441,176. Kelvin Co. produces and sells socks. Variable costs are budgeted at $3 per pair, and fixed costs for the year are expected to total $100,000. The selling price is expected to be $5 per pair The sales dollars required for Kelvin Co.to make a before-tax profit (nB) of $13,000 are: 14 Multiple Choice $282,500 $291,500. $294,500 $288,500. $258,500. Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm's upcoming income stream. The CFO asked you to use the company financial information provided below Sales price Per-unit variable costs: 78.00 41.85 18.45 Total per-unit variable costs 60.30 Invoice cost Sales commissions Total annual fixed costs: Advertising Rent Salaries 56,150 78,300 226, 300 360,750 Total annual fixed costs The annual breakeven point, in unit sales, is Multiple Choice 15,382 units 11,382 units. 20,382 units 32,382 units 9,382 units