QUESTION 22

1. Assume Monopoly Corporation provided the following forecasted contribution margin style income statement:

   Revenue	$ 500,000
   Variable Costs	(240,000)
   Contribution Margin	260,000
   Fixed Costs	(100,000)
   Net Income	160,000

   If Monopoly Corporations sales volume increases by 20%, what will their new net income be?

   	A.	202,000
   	B.	212,000
   	C.	260,000
   	D.	192,000

8.72 points

QUESTION 23

1. If a company expects revenues to decline, management should attempt to convert its variable costs into fixed costs.

   True

   False

6 points

QUESTION 24

1. To find the break-even point for a company that sells several products, the analyst must make an assumption about what the sales mix will be and calculate a weighted average contribution margin based on that sales mix.

   True

   False