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Management predicts total sales for June to be $3,000,000, yielding a margin of safety of $1,000,000 and a contribution margin ratio of25%. Which ofthe following

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Management predicts total sales for June to be $3,000,000, yielding a margin of safety of $1,000,000 and a contribution margin ratio of25%. Which ofthe following amounts is not consistent with this information? a Fixed costs, $500,000 1 Variable costs, $750,000. VC 3,000,000 X 75 2,250,000 c Operating income, $250,000 d Break-even sales volume, $2,000,000. MS-Actual -BE; 1 M 3m -? Use the following data for questions 2 through 4. The recent high and low levels of hours operated and monthly repair cost for heavy equipment for Universal Mfg. are shown below: Hours Operated Repair Cost Highest observedle Lowest observed level 24 45 21,500 6,700 Refer to the above data. Using the high-low method, compute the variable element of repair cost per hour of operation for Universal's equipment: a $750 b $3.3:3 2 c S0.30 d $0.34 3 Refer to the above data. Using the high-low method, compute the fixed element of Universal's monthly repair cost: a $150 C S6,300 d $6,450 $250 Refer to the above data. The total estimated repair cost for a month in which Universal operates equipment for 19,000 hours is a $5,950 b $6,300 4 C $6,450. d $5,700 5 Perkins Corporation manufactures two products; data are shown below: Relative Sales Mix Contribution Margin Ratio 40% 30% Product A Product B 40% 60% If Perkins' monthly fixed costs average $425,000, what is its break-even point expressed in sales dollars? a S1,320,000 b $1,400,000 C S1,250,000 d $990,000

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