The information given in the below table pertains to Ralphie Company for last month. 65,000 units are sold for $75 per unit. The fixed expenses are $750,000 per month, and the variable expenses per unit include the items given in the below table.

16. What is the contribution margin ratio? *

a-30%

b-40%

c-60%

d-70%

e-None of the above

17. What is the break-even point in unit sales? *

a-10,000 units

b-25,000 units

c-75,000 units

d-1,875,000 units

e-None of the above

18. What is the net operating income for last month? *

a-$1,200,000

b-$1,950,000

c-$4,125,000

d-$4,875,000

e-None of the above

19. What is the companys margin of safety in dollars? *

a-$1,875,000

b-$1,950,000

c-$3,000,000

d-$4,875,000

e-None of the above

20. What is the amount of dollar sales required to earn a target profit of $1,500,000? *

a-$1,200,000

b-$1,875,000

c-$3,750,000

d-$5,625,000

e-None of the above

Item: Direct Materials Direct Labor Variable Manufacturing Overhead Variable Selling and Administrative Expenses Amount $15 per unit $15 per unit $10 per unit $5 per unit