Exam 2-Practice Problems 10) Logsdon Corporation produces and sells a single product whose contribution margin ratio is 63%. The company's monthly fixed expense is S72O,720 and the company's monthly target profit is $28,000. The dollar sales to attain that target profit is closest to: A) $471.694 B) $454,054 C) S1,188,444 D) $1,144,000 11) Thornbrough Corporation produces and sells a single product with the following Per Unit S 220 Percent of Sales Selling price Variable expenses Contribution margin 100 % 80 The company is currently selling 7,000 units per month. Fixed expenses are $901,000 per mon The marketing manager would like to cut the selling price by $18 an d increase the advertising budget by S53,000 per month. The marketing manager predicts that these two changes woul increase monthly sales by 1,000 units. What should be the overall effect on the compan y's monthly net operating income of this change? A) decrease of $105,000 B) increase of $149,000 C) increase of $105,000 D) decrease of $21,000 12) Highjinks, Inc., has provided the following budgeted data: Sales Selling price Variable expense Fixed expense units 100 per unit 70 per unit 20,000 S 450,000 What is the company's margin of safety as a percentage of sales? A) 50% B) 25% C) 75% D) 100%