Question
Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units. What is
Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units.
What is the margin of safety in dollars?
Multiple Choice
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$3,736,965
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$5,988,500
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$4,730,625
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$1,257,875
Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below:
Product I49V | Product Z50U | ||||||
Sales | $ | 32,000 | $ | 37,000 | |||
Variable expenses | $ | 12,000 | $ | 27,330 | |||
The fixed expenses of the entire company were $39,140. The break-even point for the entire company is closest to:
Multiple Choice
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$78,470
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$91,023
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$39,140
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$46,260
A cement manufacturer has supplied the following data:
Tons of cement produced and sold | 275,000 | |
Sales revenue | $ | 979,000 |
Variable manufacturing expense | $ | 232,000 |
Fixed manufacturing expense | $ | 313,000 |
Variable selling and administrative expense | $ | 110,650 |
Fixed selling and administrative expense | $ | 93,000 |
Net operating income | $ | 230,350 |
The company's contribution margin ratio is closest to:
Multiple Choice
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44.3%
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65.0%
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68.0%
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23.5%
Mullee Corporation produces a single product and has the following cost structure:
Number of units produced each year | 7,000 | |
Variable costs per unit: | ||
Direct materials | $ | 51 |
Direct labor | $ | 12 |
Variable manufacturing overhead | $ | 2 |
Variable selling and administrative expense | $ | 5 |
Fixed costs per year: | ||
Fixed manufacturing overhead | $ | 441,000 |
Fixed selling and administrative expense | $ | 112,000 |
The absorption costing unit product cost is:
Multiple Choice
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$149 per unit
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$65 per unit
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$63 per unit
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$128 per unit
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