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Question 1 Not yet answered Points out of 1.00 P Flag question (Ch5&6) Candel Gym has sales of $300,000 this month, contribution margin of $90,000,

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Question 1 Not yet answered Points out of 1.00 P Flag question (Ch5&6) Candel Gym has sales of $300,000 this month, contribution margin of $90,000, monthly fixed cost of $54,000 and profit of $36,000. What is the firm's current margin of safety ratio to sales [ie., safety margin ratio)? Select one: O a. 0.40. b. 0.12. O c. 0.30. O d. 0.667. Question 2 Not yet answered Points out of 1.00 P Flag question (Ch5&6) Candel Gym has sales of $300,000 this month, contribution margin (after subtracting variable cost] of $90,000, monthly fixed cost of $54,000 and profit of $36,000. What is the firm's current breakeven ratio to sales? Select one: a. 0.40. O b. 0.30. O c. 0.12. O d. 0.60. Question 3 Not yet answered Points out of 1.00 Flag question (Cho) Sales mix is Select one: O a. a measure of the relative percentage of a company's variable costs to its fixed costs. b. a measure of the relative percentage in which a company's products are sold. O c. important to sales managers but not to accountants. O d. easier to analyze on traditional income statements. Question 4 Not yet answered Points out of 1.00 Flag question (Ch6) A high degree of operating leverage Select one: a. exposes a company to greater earnings-volatility risk. b. exposes a company to less earnings-volatility risk. c. indicates that a company has a larger percentage of variable costs relative to its fixed costs. O d. is calculated by dividing fixed costs by contribution margin. Question 5 Not yet answered Points out of 1.00 P Flag question (Ch6) Dos Mfg Co. sells two products. Product A sells for $10 per unit with variable costs of $6 per unit. Product B sells for $20 per unit with variable costs of $12 per unit. Product A sells 75%, while B sells 25% of the total units sold. Currently, with combined sales of 20,000 units, the company made Total Revenue of $250,000, after subtracting variable cost got Total Contribution Margin of $100,000, and after subtracting Total Fixed Cost of $50,000, earned Operating Profit of $50,000. When in breakeven, how many units of A and B would be sold? Select one: a. 3,000 units of A, and 1,000 units of B. O b. 9,000 units of A, and 3,000 units of B. O c. 7,500 units of A, and 2,500 units of B. O d. 6,000 units of A, and 2,000 units of R

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