The following information is for questions 1 until 6: The following is Addison Corporation's contribution format income st Sales Variable expenses Contribution margin Fixed expenses Net operating income $1.000.000 700.000 300,000 180.000 S 120.000 The company has no beginning or ending inventories. A total of 20,000 and sold last month. 1. What is the company's contribution margin ratio? A. 250% B. 150% C. 70% D. 30% F10 ennet can contain viruses. Unless you need to do Protected View Enable Editing 2. What is the company's break-even in units? A. 20,000 units B. O units C. 18.000 units D. 12,000 units 3 If sales increase by 100 units, by how much should net operating income increase? A $400 B. $4,800 C. $1,500 D. $2,500 4. How many units would the company have to sell to attain the target profit of $150,0002 A. 22,000 B. 37,500 C. 25,000 D. 26,667 EN F11 F12 Scrlk Pase Sysko 814 5. What is the company's margin of safety in dollars? A. $400,000 B. $600,000 C. $120,000 D. $880,000 6. What is the company's degree of operating leverage? A 0.12 B. 2.5 C. 0.4 D. 3.3 The following information is for questions 7 until S: The following informabones for guestions 7 until 8: McGordon Corporation has provided the following data: Sales Variable expenses Fixed expenses....... $800,000 $560,000 $168,000 7. The contribution margin is: A. $240,000 B. $560,000 C. $632,000 D. $72,000 8. The break-even point in sales dollars is: A $240,000 B. $560,000 C. $728,000 D. $408,000 ELE F10 RE Search Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing The following information is for questions 9 until 11: A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue. Variable manufacturing expense.. Fixed manufacturing expense Variable selling and administrative expense. Fixed selling and administrative expense Net operating income. 520,000 $2,132,000 $650,000 $464.000 $260.000 $312.000 $446.000 9. What is the company's unit contribution margin? A. $0.86 B. $2.35 C. $4.10 D. $1.75 10. The company's contribution margin ratio is closest to A 42.7% B. 57.3% C. 45.8% D. 21.0% 11 Tf the romans innrannar initalar mah 20 thout innrannsificat Tutorial Chapter Protected view Saved to this PC NURULTIBLES References Mailings Review View Help O Search can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing 11. If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to: A $459,380 B. $453,667 C. $13,380 D. $482,660 The following information is for questions 12 until 14: A company that makes organic fertilizer has supplied the following data: Bags produced and sold 200.000 Sales revenue S1,560,000 A company that makes organic fertilizer has supplied the following data: Bags produced and sold Sales revenue.... Variable manufacturing expense. Fixed manufacturing expense Variable selling and administrative expense......... Fixed selling and administrative expense ............ Net operating income 200,000 $1,560,000 $660,000 $448.000 $180,000 $214,000 $58.000 12. The company's margin of safety in units is closest to: A. 115,128 B. 16,111 C. 168,986 D. 100,444 13. The company's unit contribution margin is closest to: A $4.50 B. $6.90 C. $3.60 D. $4.20 F11 F12 Serik WUN References Mailings Review View Help Search net can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing 14. The company's degree of operating leverage is closest to: A 1.27 B. 26.90 C.3.45 D. 12.41 The following information is for questions 15 until 16: Vandinter Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit Variable expense per unit. Fixed expense per month S160 S32 $536,320 Pause FH1 PASS Sysko F10 Sor Lk Enable Editing the internet can contain viruses. Unless you need to edit, it's saler to stay in Protected View. 15. The break-even in monthly unit sales is closest to: A 8,101 B. 3,352 C. 4,190 D. 16,760 16. The break-even in monthly dollar sales is closest to: A. $536,320 B. $670,400 C. $2,681,600 D. $1,296,160 The following information is for questions 17 until 19: Pedaci Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit Variable expense per unit Fixed expense per month SI 20.00 S76.80 $370,302 PAS Neerences Maung Enable Editing nternet can contain viruses. Unless you need to edit, it's safer to stay in Protected View The following information is for questions 17 until 18: Pedaci Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit Variable expense per unit. Fixed expense per month $120.00 $46.80 $370,392 17. Assume the company's monthly target profit is $15,000. The unit sales to attain that target profit is closest to: A 3.212 B. 5,265 C. 8,235 D. 5,571 18. Assume the company's monthly target profit is $17.000. The dollar sales to attain that target profit is closest to: A. $387,392 B. $635,069 C. $671.925 D. $993,313 w F12 Sortk Puso SysRg Pause Break sert $ % 5 6 R T Y P 19. On a cost-volume-profit graph, the break-even point is located: A at the origin. B. where the total revenue line intersects the volume axis. C. where the total expenses line intersects the dollars axis. D. where the total revenue line intersects the total expenses line 20. Once the break-even point is reached: A the total contribution margin changes from negative to positive. B. net operating income will increase by the unit contribution margin for each additional item sold. C.variable expenses will remain constant in total. D the contribution margin ratio begins to decrease. 712 Ser Lk Presc Syska Pac BE 8 0