If a firm's forecasted sales are $238,000 and its break-even sales are $184,000, the margin of safety in dollars is:

$54,000.

$238,000.

$184,000.

$422,000.

$23,400.

During March, a firm expects to its total sales to be $158,000, its total variable costs to be $94,800, and its total fixed costs to be $24,800. The contribution margin for March is:

$63,200.

$94,800.

$119,600.

$38,400.

$24,800.

A firm expects to sell 25,600 units of its product at $11.60 per unit and to incur variable costs per unit of $6.60. Total fixed costs are $76,000. The total contribution margin is:

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$52,000.

$76,000.

$128,000.

$168,960.

$244,960.

Watson Company has monthly fixed costs of $85,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,200, what dollar amount of sales must be made to produce the target income?

$250,500

$100,200

$212,500

$38,000

$174,500

Henderson Co. has fixed costs of $21,000 and a contribution margin ratio of 30%. If expected sales are $100,000, what is the margin of safety as a percent of sales?

30%.

40%.

7%.

43%.

70%.

Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?

12,320.

8,800.

14,080.

1,120.

11,200.

Raven Company has a target of earning $71,100 pre-tax income. The contribution margin ratio is 32%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $38,200?

$38,200.

$407,500.

$341,562.

$288,125.

Use the following information to determine the break-even point in sales dollars:

Unit sales	57,200 Units
Dollar sales	$572,000
Fixed costs	$213,000
Variable costs	$214,500

$213,000.

$144,500.

$231,200.

$340,800.

$572,000.

$222,188.

Use the following information to determine the break-even point in units (rounded to the nearest whole unit):

Unit sales	48,000 Units
Unit selling price	$15.10
Unit variable cost	$8.70
Fixed costs	$184,000

12,185

28,750

7,731

35,310

21,149

The following information is available for a company's cost of sales over the last five months.

Month	Units sold	Cost of sales
January	450	$33,000
February	850	$39,500
March	1,850	$51,500
April	2,650	$63,500

Using the high-low method, the estimated variable cost of sales per unit sold is:

$23.96.

$73.33.

$31.13.

$13.86.

$27.84.

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $192,000. The company produced 24,000 units, and sold 17,000 units, leaving 7,000 units in inventory at year-end. What is the value of ending inventory under absorption costing?

$63,000

$119,000

$56,000

$192,000

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $256,000. The company produced 32,000 units, and sold 26,500 units, leaving 5,500 units in inventory at year-end. What is the value of ending inventory under variable costing?

$49,500

$93,500

$44,000

$256,000

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $270,000. The company produced 27,000 units, and sold 18,500 units, leaving 8,500 units in inventory at year-end. Income calculated under variable costing is determined to be $355,000. How much income is reported under absorption costing?

$355,000

$270,000

$625,000

$440,000

Shore Company reports the following information regarding its production cost.

Units produced	33,000 units
Direct labor	$28 per unit
Direct materials	$29 per unit
Variable overhead	$285,000 in total
Fixed overhead	$99,920 in total

Compute production cost per unit under absorption costing.

$66.00

$68.66

$57.00

$28.00

$29.00

Urban Company reports the following information regarding its production cost:

Units produced	24,000 units
Direct labor	$17 per unit
Direct materials	$22 per unit
Variable overhead	$224,000 in total
Fixed overhead	$114,000 in total

Compute production cost per unit under variable costing.

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$22.00

$43.75

$48.33

$17.00

$39.00

Hayes Inc. provided the following information for the year 2015:

Beginning inventory	150 units
Units produced	800 units
Units sold	858 units
Selling price	$200/unit
Direct materials	$40/unit
Direct labor	$21/unit
Variable manufacturing overhead	$20/unit
Fixed manufacturing overhead	$29,600/yr
Variable selling/administrative costs	$13/unit
Fixed selling/administrative costs	$20,500/yr

What is the unit product cost for the year using absorption costing?

$118

$81

$94

$115