Item 10

Majid Corporation sells a product for $120 per unit. The product's current sales are 40,800 units and its break-even sales are 31,350 units.

What is the margin of safety in dollars?

Multiple Choice

• $2,890,654
• $4,896,000
• $3,762,000
• $1,134,000

10B.

Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below:

	Product I49V			Product Z50U
Sales	$	28,000		$	33,000
Variable expenses	$	11,600		$	23,170

The fixed expenses of the entire company were $39,180. The break-even point for the entire company is closest to:

Multiple Choice

• $73,950
• $91,116
• $39,180
• $46,300

10C.

A cement manufacturer has supplied the following data:

Tons of cement produced and sold		230,000
Sales revenue	$	934,000
Variable manufacturing expense	$	285,000
Fixed manufacturing expense	$	286,000
Variable selling and administrative expense	$	135,300
Fixed selling and administrative expense	$	84,000
Net operating income	$	143,700

The company's contribution margin ratio is closest to:

Multiple Choice

• 38.9%
• 55.0%
• 69.4%
• 15.4%