Question 1. Assume the following: 1. sales = $200,000 2. unit sales = 10,000 3. the contribution margin ratio = 40% 4. net operating income = $10,000 Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $70,000 The total variable expenses = $80,000 The total contribution margin = $120,000 The break-even point is 7,500 units

Question 2. Assume the following: 1. variable expenses = $286,000 2. unit sales = 10,000 3. the contribution margin ratio = 35% 4. net operating income = $10,000 Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $100,100 The variable expense ratio is 186% The total contribution margin = $185,900 The total sales = $440,000

Question 3. Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 119,000 Net operating income $ 68,500 The unit sales to break-even is: Multiple Choice 3,719 units. 4,760 units. 7,933 units. 8,933 units.

Question 4. Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 60,000 Net operating income $ 120,000 If unit sales increase by 22%, then the best of estimate of the new net operating income is: Note: Do not round your intermediate calculations. Multiple Choice $74,400. $159,600. $186,000. $164,000.

Question 5. Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 44,000 Net operating income $ 136,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $142,500. $151,100. $155,500. $146,500.

Question 6. Assume the following information for a company with only two products: Product A Product B Total Sales $ 600,000 $ 400,000 $ 1,000,000 Variable expenses $ 200,000 $ 100,000 $ 300,000 If the break-even sales point is $580,000, then what is the total amount of fixed expenses? Multiple Choice $406,000 $206,000 $580,000 $786,000

Question 7. Assume the following information: Amount Selling price $ 30 Variable expense per unit $ 12 Fixed expenses $ 17,500 per month Unit sales 2,190 per month What is the net operating income per month? Multiple Choice $4,420 $26,280 $21,920 $24,090

Question 8. Assume the following information: Amount Selling price $ 30 Variable expense per unit $ 12 Fixed expenses $ 14,000 per month Unit sales 2,120 per month The degree of operating leverage is closest to: Multiple Choice 1.58. 0.40. 1.98. 0.38.

Question 9. Assume that a company sells customized sweatshirts for $15 per unit. It pays a sales commission of $5 per unit sold. The company must buy sweatshirts from its supplier in batches of 100 units at an average unit cost of $7 per sweatshirt. The number of sweatshirts the company would need to sell to earn a target profit of $1,630 is closest to: Multiple Choice 1,936 sweatshirts. 583 sweatshirts. 600 sweatshirts. 536 sweatshirts.

Question 10. Assume a company provided the following information: Patient-Days Maintenance Cost High activity level (September) 3,500 $ 10,400 Low activity level (May) 2,500 $ 9,200 Using the high-low method, what would be the estimated maintenance cost in a month with 2,620 patient-days? Multiple Choice $9,488 $9,344 $8,361 $6,144