Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.

Sales (8,800 units)	$	528,000
Variable expenses		290,400
Contribution margin		237,600
Fixed expenses		211,700
Net operating income	$	25,900

If the company sells 9,200 units, its net operating income should be closest to:

Multiple Choice

$27,077

$49,900

$36,700

$25,900

Warrix Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (3,000 units)	$	120,000
Variable expenses		90,000
Contribution margin		30,000
Fixed expenses		27,000
Net operating income	$	3,000

If sales increase to 3,020 units, the increase in net operating income would be closest to:

Multiple Choice

$800.00

$20.00

$600.00

$200.00

Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (1,000 units)	$	40,000
Variable expenses		30,000
Contribution margin		10,000
Fixed expenses		7,000
Net operating income	$	3,000

If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:

Multiple Choice

$450

$1,000

$2,150

$9,450

Duve Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (2,000 units)	$	40,000
Variable expenses		24,000
Contribution margin		16,000
Fixed expenses		11,200
Net operating income	$	4,800

If the selling price increases by $4 per unit and the sales volume decreases by 200 units, the net operating income would be closest to:

Multiple Choice

$7,200

$12,800

$10,400

$11,520

Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (4,000 units)	$	240,000
Variable expenses		156,000
Contribution margin		84,000
Fixed expenses		81,900
Net operating income	$	2,100

The break-even point in dollar sales is closest to:

Multiple Choice

$234,000

$237,900

$156,000

$0

Mishoe Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (1,000 units)	$	50,000
Variable expenses		32,500
Contribution margin		17,500
Fixed expenses		12,250
Net operating income	$	5,250

The break-even point in unit sales is closest to:

Multiple Choice

0 units

895 units

700 units

650 units

Goodman Corporation has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If total fixed costs are $66,000, the degree of operating leverage is:

Multiple Choice

0.79

0.93

2.67

1.73