Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.

Sales (6,600 units)	$429,000
Variable expenses	297,000
Contribution margin	132,000
Fixed expenses	103,500
Net operating income	$ 28,500

If the company sells 6,500 units, its net operating income should be closest to:

	$24,000
	$28,500
	$26,500
	$27,979

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $2 per unit, and the fixed expenses total $30,400 per period. By how much will net operating income change if sales are expected to increase by $42,000?

	$22,000 decrease
	$11,600 increase
	$33,600 increase
	$47,520 increase

The following information pertains to Clove Co.:

Budgeted sales	$1,040,000
Breakeven sales	$ 660,000
Budgeted contribution margin	$ 560,000

Clove's margin of safety is:

	$580,000
	$760,000
	$380,000
	$480,000

Sperberg Corporation's operating leverage is 5.9. If the company's sales increase by 10%, its net operating income should increase by about:

	1.7%
	59.0%
	10.0%
	47.4%

Mark Corporation produces two models of calculators. The Business model sells for $50, and the Math model sells for $50. The variable expenses are given below:

	Business Model	Math Model
Variable production costs per unit	$18	$19
Variable selling and administrative expenses per unit	$10	$ 8

The fixed expenses are $76,900 per month. The expected monthly sales of each model are: Business, 1,200 units; Math, 400 units.

The break-even point in unit sales for the expected sales mix is closest to: (Do not round intermediate calculations.)

	2,592 of each product
	2,592 Business Model and 864 Math Model
	864 Business Model and 2,592 Math Model
	864 of each product