Q1: Java Furnitures sells 500 chairs resulting in Rs.75,000 of sales revenue, Rs.28,000 of variable costs, and Rs.18,000 of fixed costs.

Calculate Breakeven point in chairs.

Q2: Fost Corporation's contribution margin ratio is 20%, at the $225,000 sales level, net operating income is $3000.

Calculate DOL.

Q3: Casa Furniture manufactures chairs. The cost accounting system estimates manufacturing costs to be $80 per table, consisting of 60% variable costs and 40% fixed costs. The company has surplus capacity available. It is Purple Trees' policy to add a 50% markup to full costs.

A large hotel chain is currently expanding and has decided to decorate all new hotels using the new furniture. Casa is invited to submit a bid to the hotel chain. What per unit price will Casa most likely bid on this long-term order?