Q2: If sales increase by $100,000 next month, by how much should operating income 19 increase? 20 A) $640,000 21 B) $100,000 22 C) $40,000 23 D) $1,600,000 24 25 Q3: What is the company's break even in units? 26 A) 15,000 27 B) 12,500 28 C) O 29 D) 22,500 30 31 32 Q4: What is the company's margin of safety in dollars? 33 A) $250,000 34 B) $600,000 35 C) $1,500,000 36 D) $100,000 37 33 32 Q4: What is the company's margin of safety in dollars? A) $250,000 34 B) $600,000 35 C) $1,500,000 36 D) $100,000 37 38 39 Use the following information for the next 4 questions: Brad Sherwood Corporation sells two types of computers, one is designed for audio applications and the other for video applications. Sherwood incurs $300,125 in foed 40 costs. The sales mix is 75% audio computers and 25% video computers. Audio Video 41 Per unit data Computer Computer 42 Selling price $ 1,500 $ 1,750 43 Variable costs $ 1,100 $ 1,200 Contribution margir $ 44 550 400 $ Usus Q2: If sales increase by $100,000 next month, by how much should operating income 19 increase? 20 A) $640,000 21 B) $100,000 22 C) $40,000 23 D) $1,600,000 24 25 Q3: What is the company's break even in units? 26 A) 15,000 27 B) 12,500 28 C) O 29 D) 22,500 30 31 32 Q4: What is the company's margin of safety in dollars? 33 A) $250,000 34 B) $600,000 35 C) $1,500,000 36 D) $100,000 37 33 32 Q4: What is the company's margin of safety in dollars? A) $250,000 34 B) $600,000 35 C) $1,500,000 36 D) $100,000 37 38 39 Use the following information for the next 4 questions: Brad Sherwood Corporation sells two types of computers, one is designed for audio applications and the other for video applications. Sherwood incurs $300,125 in foed 40 costs. The sales mix is 75% audio computers and 25% video computers. Audio Video 41 Per unit data Computer Computer 42 Selling price $ 1,500 $ 1,750 43 Variable costs $ 1,100 $ 1,200 Contribution margir $ 44 550 400 $ Usus