Information regarding a product manufactured and sold by Schiffman is shown below:

Maximum capacity with existing facilities4,000 units

Total fixed costs per month................................................................. $50,000

Variable cost per unit......................................................................... $42.00

Sales price per unit............................................................................ $56.00

1.Refer to the above data. The contribution margin ratio for this product is:

a20%.c30%.

b25%.d40%.

2.Refer to the above data. The number of units Schiffman must sell to break even is: (rounded)

a3,927.c4,823.

b3572. d5,140.

3.Refer to the above data. The dollar sales volume necessary to produce monthly operating income of $12,000 before taxes is:

a$188,000.c$288,000.

b$186,000.d$248,000.

4.Refer to the above data.What is the break even sales dollars?

a$120,000

b$240,000

c$360,000

d$200,000

5.Refer to the above data. At $248,000 in monthly sales volume what is the margin of safety:

a $52,500.c$ 48,000.

b$79,500.d$ 90,500.