MULTIPLE CHOICE. Select the ONE answer that best answers the question. Record all answers in the table. ONLY THE TABLE WILL BE MARKED. Each multiple choice is worth 2 marks. 1. Wendy's Company sells a single product at a selling price of $55 per unit. Variable costs are $30.25 per unit and fixed costs are $113,850. Roberts Company's break-even point is? A. $207,000. B.2,070 units. C. $253,000. D. 3,764 units. 2. A product sells for $20 per unit and has a contribution margin ratio of 40%. Fixed expenses total $120,000 annually. How many units must be sold to yield a profit of $30,000? A. 12,500 units. B. 18,750 units. C. 20,000 units D. 25,000 units The following is last month's contribution format income statement: Sales (10,000 units) $1,200,000 Less variable expenses 800,000 Contribution margin 400,000 Less fixed expenses 240,000 Net income $160,000 3. What is the company's break-even sales in units? A. O units. B. 6,000 units. C. 8,000 units. D. 12,000 units. The following is last month's contribution format income statement: Sales (20,000 units) $1,800,000 Less variable expenses 1,200,000 Contribution margin 600,000 Less fixed expenses 400,000 Net income $200,000 4. What is the company's break-even in sales dollars? A. $0. B. $1,200,000. C. $1,600,000. D. $1,800,000. The following is last month's contribution format income statement: Sales (12,000 units) $1,200,000 Less variable expenses 700,000 Contribution margin 500,000 Less fixed expenses 300,000 Net income $200,000 5. What is the company's margin of safety percentage? A. 17% B. 20%. C. 40%. D. 42%. The following is last month's contribution format income statement: Sales (15,000 units) Less variable expenses Contribution margin Less fixed expenses $1,500,000 900,000 600,000 500,000 $100,000 Net income 6. What is the company's margin of safety in dollars? A. $100,000 B. $250,000. C. $600,000 D. $1,500,000 The following is Jerry's Corporation's contribution format income statement Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fixed expenses 180,000 Net income $120,000 The company has no beginning or ending inventories. A total of 20,000 units -TEST 3V2 - Word Search Layout References Mailings Review View Developer Help 2017 89 10 11 12 13 14 15 16 The following is lerry's Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fixed expenses 180,000 Net Income $120,000 The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. 7. What is the company's contribution margin ratio? A. 30%. B. 70%. C. 150%. D. 25096. 8. What is the company's break-even point in units? A. 8,000 units. B. 12.000 units. c. 18,000 units. D. 20.000 units. * Moc 1.12 14.1-15 ACCT 1300 - TEST 3 PG. 6 9. If sales increase by 100 units, by how much should net income increase? A. $400. B. $1,500. C. $2,500. D. $4,800. 10.How many units would the company have to sell to attain target profits of $150,000? A. 22,000 units. B. 25,000 units. C. 26,667 units. D. 37,500 units. 11. What is the company's margin of safety in dollars? A. $120,000 B. $400,000 C. $600,000 D. $880,000 o M 3 O Search - 14.15 Help Developer 12.1.13 View 101-11 312 - Word Review Mailings References 5.6.7.8 ut 12. What is the company's degree of operating leverage?(round your final answer to two decimal places.) A. 0.12. B. 0.40. C. 2.50. D. 3.30. - TEST 3V2 - Word e Search Layout References Mailings Review View Developer Help 11 ACCT 1300 - TEST 3 PG.7 The following is Allison Corporation's contribution format income statement for last month: Sales Less variable expenses Contribution margin Less fixed expenses Net Income $800,000 300,000 500,000 400,000 $100,000 The company has no beginning or ending Inventories. The company produced and sold 10,000 units last month. 13. What is the company's contribution margin ratio? A. 20%. B. 62.5% C. 160%. D. 500% 14. What is the company's break-even sales in dollars? A. SO. B. $400,000 C. $640,000 D. $700,000. 15. If sales increase bv 200 units, by how much should net income increase? BD D. $700,000. 15. If sales increase by 200 units, by how much should net income increase? A. $2,000. B. $5,000. C. $6,000. D. $10,000. 16. How many units would the company have to sell to attain target profits of $120,000? A. 10,400 units. B. 10,800 units. C. 11,200 units. D. 12,000 units. 17. What is the company's margin of safety percentage? A. 10%. B. 20%. C. 25%. D. 40%. 18. What is the company's degree of operating leverage? A. 0.2. B. 1.7. C. 5.0. D. 8.0. 19. If the number of units sold increases by 10%, how much will net income increase? A. $5,000. B. $10,000. C. $20,000. D. $50,000