D E C A B Use the following information to answer the following 3 questions: Spark Design Corporation had the following results last month: $ % Sales (15,000 units) $1,500,000 100% Variable expenses $ 900,000 60% Contribution margir $ 600,000 40% $ 500,000 Operating income $ 100,000 Fixed expenses 8 Q2: If sales increase by $100,000 next month, by how much should operating income increase? A) $640,000 B) $100,000 C) $40,000 D) $1,600,000 Q3: What is the company's break-even in units? A) 15,000 B) 12,500 Formula Sheet Part1 - MO Tb Q3: What is the company's break-even in units? A) 15,000 B) 12,500 Co D) 22,500 Q4: What is the company's margin of safety in dollars? A) $250,000 B) $600,000 C) $1,500,000 D) $100,000 Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications. Sherwood incurs $300,125 in fixed costs. The sales mix is 75% audio computers and 25% video computers. Audio Video Per unit data Computer Computer Selling price $ 1,500 $ 1,750 Variable costs $ 1,100 $ 1,200 Contribution margir $ 400 $ 550 05: The weighted-average contribution margin is A) $1,125.00 B) $475.00 C) $375.00 D) 437.50 Q6: The break-even point in units is A) 632 B) 800 Cl 267 Q7: How many audio computers will be sold at the break-even point? A) 477 B) 158 C) 515 D) 172 q8: What will be the total contribution margin at the break-even point? A) $225,000 B) $372,250 C) $276,000 D) $300,125 28: What will be the total contribution margin A) $225,000 B) $372,250 C) $276,000 D) $300,125 09: The owner of the company wants a Net Income of $120,000 annually and a contribution margin ratio of 35%. The company has a 30% tax rate and fixed costs of $110,000. What operating Income does the owner expect? A) $171,429 B) $157,143 C) $184,615 D) $169,230