you will find 30 multiple choices and there is the answer in bold font , I want you to explain for me a solution way and show me the details.

18. Sanderson sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be: A. $15. B. $20. C. $50. D. an amount that cannot be derived based on the information presented. E. an amount other than those in choices "A," "B," and "C", but one that can be derived based on the information presented. 19. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's contribution margin per unit is: A. $22. B. $28. C. $35. D. $37. E. an amount other than those above. 20. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's break-even point in units is: A. 7,027 (rounded). B. 8,667 (rounded). C. 9,286 (rounded). D. 7,429 (rounded). E. an amount other than those above. 21. A recent income statement of Black Corporation reported the following data: If these data are based on the sale of 20,000 units, the contribution margin per unit would be: A. $40. B. $150. C. $290. D. $360. E. an amount other than those above. 22. A recent income statement of Black Corporation reported the following data: If these data are based on the sale of 20,000 units, the break-even point would be: A. 9,565 units (rounded). B. 11,000 units (rounded). C. 7,586 units (rounded). D. 14,667 units (rounded). E. an amount other than those above. 23. A recent income statement of Suni Corporation reported the following data: If these data are based on the sale of 20,000 units, the break-even point would be: A. 7,500 units. B. 11,628 units. C. 12,500 units. D. 33,333 units. E. an amount other than those above. 24. A recent income statement of Yang Corporation reported the following data: If these data are based on the sale of 5,000 units, the break-even sales would be: A. $2,000,000. B. $2,206,000. C. $2,500,000. D. $10,000,000. E. an amount other than those above. 25. Lawson, Inc. sells a single product for $12. Variable costs are $8 per unit and fixed costs total $360,000 at a volume level of 60,000 units. Assuming that fixed costs do not change, Lawson's break-even point would be: A. 30,000 units. B. 45,000 units. C. 90,000 units. D. negative because the company loses $2 on every unit sold. E. a positive amount other than those given above. 26. Grey, Inc. sells a single product for $20. Variable costs are $8 per unit and fixed costs total $120,000 at a volume level of 5,000 units. Assuming that fixed costs do not change, Green's break-even sales would be: A. $160,000. B. $200,000. C. $300,000. D. $480,000. E. an amount other than those above. 27. Orion recently reported sales revenues of $800,000, a total contribution margin of $300,000, and fixed costs of $180,000. If sales volume amounted to 10,000 units, the company's variable cost per unit must have been: A. $12. B. $32. C. $50. D. $92. E. an amount other than those above. 28. Strayer has a break-even point of 120,000 units. If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be: A. $4. B. $36. C. $44. D. an amount that cannot be derived based on the information presented. E. an amount other than those in choices "A," "B," and "C", but one that can be derived based on the information presented. 29. Ribco Co. makes and sells only one product. The unit contribution margin is $6 and the break-even point in unit sales is 24,000. The company's fixed costs are: A. $4,000. B. $14,400. C. $40,000. D. $144,000. E. an amount other than those above. 31. At a volume level of 500,000 units, Sullivan reported the following information: The company's contribution-margin ratio is closest to: A. 0.33. B. 0.40. C. 0.60. D. 0.67. E. an amount other than those above. 44. A recent income statement of Dragonwood Corporation reported the following data: If the company desired to earn a target profit of $1,270,000, it would have to sell: A. 5,778 units. B. 8,600 units. C. 10,160 units. D. 11,908 units. E. an amount other than those above. 45. Yellow Dot, Inc. sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Yellow Dot have to achieve to earn a target profit of $240,000? A. $400,000. B. $500,000. C. $600,000. D. $750,000. E. $900,000. Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. 46. Narchie: A. will break-even by selling 8,000 units. B. will break-even by selling 13,333 units. C. will break-even by selling 20,000 units. D. will break-even by selling 1,000,000 units. E. cannot break-even because it loses money on every unit sold. 47. Each unit that Narchie sells will: A. increase profit by $20. B. increase profit by $30. C. increase profit by $50. D. increase profit by some other amount. E. decrease profit by $5. 48. In order to produce a target profit of $22,000, Narchie's dollar sales must total: A. $8,440. B. $21,100. C. $1,000,000. D. $1,055,000. E. an amount other than those above. 49. If Narchie sells 24,000 units, its safety margin will be: A. $200,000. B. $400,000. C. $1,000,000. D. $1,200,000. E. an amount other than those above. 50. The difference between budgeted sales revenue and break-even sales revenue is the: A. contribution margin. B. contribution-margin ratio. C. safety margin. D. target net profit. E. operating leverage. 51. Maxine's budget for the upcoming year revealed the following figures: If the company's break-even sales total $750,000, Maxine's safety margin would be: A. $(90,000). B. $90,000. C. $246,000. D. $336,000. E. $696,000. 52. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. Brooklyn's safety margin in units is: A. (13,400). B. 0. C. 1,600. D. 13,600. E. an amount other than those above. 53. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's unit sales are 200 units less than anticipated, its breakeven point will: A. increase by $12 per unit sold. B. decrease by $12 per unit sold. C. increase by $8 per unit sold. D. decrease by $8 per unit sold. E. not change. 54. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's unit sales are 300 units more than anticipated, its break-even point will: A. increase by $12 per unit sold. B. decrease by $12 per unit sold. C. increase by $8 per unit sold. D. decrease by $8 per unit sold. E. not change. 56. Danielle sells a single product at $20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, the company will experience: A. no change in profit because a 20% drop in sales price is balanced by a 20% increase in volume. B. an $80,000 drop in profit. C. a $240,000 drop in profit. D. a $400,000 drop in profit. E. a change in profit other than those above. 60. O'Dale sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. The company's weighted-average unit contribution margin is: A. $3.00. B. $3.55. C. $4.00. D. $19.35. E. an amount other than those above. Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. 62. The weighted-average unit contribution margin is: A. $4.80. B. $9.00. C. $9.25. D. $17.00. E. an amount other than those above. 63. Assuming that the sales mix remains constant, the total number of units that Jamal must sell to break even is: A. 2,432. B. 2,647. C. 4,737. D. 5,000. E. an amount other than those above. 64. Assuming that the sales mix remains constant, the number of units of Plain that Jamal must sell to break even is: A. 2,000. B. 3,000. C. 3,375. D. 5,000. E. 5,625. 65. Assuming that the sales mix remains constant, the number of units of Fancy that Jamal must sell to break even is: A. 2,000. B. 3,000. C. 3,375. D. 5,000. E. 5,625. 77. The following information relates to Dazie Company: Dazie's operating leverage factor is closest to: A. 0.067. B. 0.167. C. 0.400. D. 2.500. E. 6.000. 78. The following information relates to Paternus Company: If a manager at Paternus desired to determine the percentage impact on income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: A. 0.25. B. 0.40. C. 2.50. D. 4.00. E. 10.00. Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: 79. Edmonco's operating leverage factor was: A. 4. B. 5. C. 6. D. 7. E. 8. 80. If Edmonco's sales revenues increase 15%, what will be the percentage increase in income before income taxes? A. 15%. B. 45%. C. 60%. D. 75%. E. An amount other than those above. 83. A company, subject to a 40% tax rate, desires to earn $500,000 of after-tax income. How much should the firm add to fixed costs when figuring the sales revenues necessary to produce this income level? A. $200,000. B. $300,000. C. $500,000. D. $833,333. E. $1,250,000. 84. Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: How many units must Barrey sell to earn an after-tax profit of $180,000? A. 42,000. B. 45,000. C. 51,000. D. 61,000. E. An amount other than those above. 85. Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: How many units must Barrey sell to earn an after-tax profit of $225,000? A. 67,250. B. 62,250. C. 61,000. D. 51,000. E. An amount other than those above 18. Sanderson sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be: A. $15. B. $20. C. $50. D. an amount that cannot be derived based on the information presented. E. an amount other than those in choices "A," "B," and "C", but one that can be derived based on the information presented. Answer: (B) $20 Note: As the break-even point is achieved, hence all fixed cost is recovered. So sale of addition unit will give profit = sale price - variable cost. Question: 19. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's contribution margin per unit is: A. $22. B. $28. C. $35. D. $37. E. an amount other than those above. Answer: (C) $35 Note: Contribution per unit = ($1,000,000 - $300,000) / 20000 Question: 20. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's break-even point in units is: A. 7,027 (rounded). B. 8,667 (rounded). C. 9,286 (rounded). D. 7,429 (rounded). E. an amount other than those above. Answer: D. 7,429 (rounded). Note: Break-even point in units = ($260,000)/ ($35) = 7429 (rounded) Question: 21. A recent income statement of Black Corporation reported the following data: If these data are based on the sale of 20,000 units, the contribution margin per unit would be: A. $40. B. $150. C. $290. D. $360. E. an amount other than those above. Answer: (B) $150 Contribution margin per unit = ($8,000,000 - $5,000, 000) / 20000 Question: 22. A recent income statement of Black Corporation reported the following data: If these data are based on the sale of 20,000 units, the break-even point would be: A. 9,565 units (rounded). B. 11,000 units (rounded). C. 7,586 units (rounded). D. 14,667 units (rounded). E. an amount other than those above. Answer: (D) 14,667 unit(rounded) Note: Break-even point units = $2,200,000 / $150 = 14,666.66 or 14,667 units Question: 23. A recent income statement of Suni Corporation reported the following data: If these data are based on the sale of 20,000 units, the break-even point would be: A. 7,500 units. B. 11,628 units. C. 12,500 units. D. 33,333 units. E. an amount other than those above. Answer: (C) 12,500 units Note: Contribution margin per unit = (6,800,000 - 2,800,000) / 20,000 = $200 Break-even point = 2,500,000 / 200 = 12,500 units Question: 24. A recent income statement of Yang Corporation reported the following data: If these data are based on the sale of 5,000 units, the break-even sales would be: A. $2,000,000. B. $2,206,000. C. $2,500,000. D. $10,000,000. E. an amount other than those above. Answer: (A) $200,000 Note: Sale price per unit = $2,500,000 / 5000 = $500 Contribution per unit = ($2,500,000 - $1,500,000) / 5000 = $200 Break-even point = 800,000 / 200 = 4,000 units Break-even sales = 4,000 * 500 = $200,000 Question: 25. Lawson, Inc. sells a single product for $12. Variable costs are $8 per unit and fixed costs total $360,000 at a volume level of 60,000 units. Assuming that fixed costs do not change, Lawson's break-even point would be: A. 30,000 units. B. 45,000 units. C. 90,000 units. D. negative because the company loses $2 on every unit sold. E. a positive amount other than those given above. Answer: (B) 90,000 units Note: Break-even point = $360,000 / (12-8) = 90,000 Question: 26. Grey, Inc. sells a single product for $20. Variable costs are $8 per unit and fixed costs total $120,000 at a volume level of 5,000 units. Assuming that fixed costs do not change, Green's break-even sales would be: A. $160,000. B. $200,000. C. $300,000. D. $480,000. E. an amount other than those above. Answer: (b) $200,000 Break-even sales units = 120, 000 / (20-8) = 10,000 units Sales = 10,000 * 20 =20,000 Question: 27. Orion recently reported sales revenues of $800,000, a total contribution margin of $300,000, and fixed costs of $180,000. If sales volume amounted to 10,000 units, the company's variable cost per unit must have been: A. $12. B. $32. C. $50. D. $92. E. an amount other than those above. Answer: (C) $50 Note: - Variable cost = $800,000 - $300,000 = $500,000 Variable cost per unit = $500,000 / 10,000 = $50 Question: 28. Strayer has a break-even point of 120,000 units. If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be: A. $4. B. $36. C. $44. D. an amount that cannot be derived based on the information presented. E. an amount other than those in choices "A," "B," and "C", but one that can be derived based on the information presented. Answer: (B) $36 Question: 29. Ribco Co. makes and sells only one product. The unit contribution margin is $6 and the break-even point in unit sales is 24,000. The company's fixed costs are: A. $4,000. B. $14,400. C. $40,000. D. $144,000. E. an amount other than those above. Answer: (D) $144,000 Note: Fixed cost = break-even point sale * contribution per unit = 24,000 * 6 Question: 31. At a volume level of 500,000 units, Sullivan reported the following information: The company's contribution-margin ratio is closest to: A. 0.33. B. 0.40. C. 0.60. D. 0.67. E. an amount other than those above. Answer: D. 0.67 Contribution margin ratio = (Sales - variable cost) / Sales Question: 44. A recent income statement of Dragonwood Corporation reported the following data: If the company desired to earn a target profit of $1,270,000, it would have to sell: A. 5,778 units. B. 8,600 units. C. 10,160 units. D. 11,908 units. E. an amount other than those above. Answer: (B) 8,600 units Note: Total contribution required = 2,600,000 + 1,270,000 = 3,870,000 Contribution per unit = (9,600,000 - 6,000,000) /8000 = 450 Required sale units = 3,870,000 / 450 = 8600 units Question: 45. Yellow Dot, Inc. sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Yellow Dot have to achieve to earn a target profit of $240,000? A. $400,000. B. $500,000. C. $600,000. D. $750,000. E. $900,000. Answer: (c) $600,000 Note: Total contribution required = 120,000 + 240,000 = 360,000 Required sales units = 360,000 / (10-4) = 60,000 units Required sales (amount) = 60,000 * 10 = $600,000 Question: Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. 46. Narchie: A. will break-even by selling 8,000 units. B. will break-even by selling 13,333 units. C. will break-even by selling 20,000 units. D. will break-even by selling 1,000,000 units. E. cannot break-even because it loses money on every unit sold. Answer: (C) Break-even sales = fixed cost / contribution margin per unit ==> 400,000 / (50*40%) = 20,000 units. Question: 47. Each unit that Narchie sells will: A. increase profit by $20. B. increase profit by $30. C. increase profit by $50. D. increase profit by some other amount. E. decrease profit by $5. Answer: (A) increase profit by $20. Note: Assuming the company has achieved break even sales (i.e. sold 20,000 units already) Question: 48. In order to produce a target profit of $22,000, Narchie's dollar sales must total: A. $8,440. B. $21,100. C. $1,000,000. D. $1,055,000. E. an amount other than those above. Answer: (D) $1,055,000 Note: Question: 49. If Narchie sells 24,000 units, its safety margin will be: A. $200,000. B. $400,000. C. $1,000,000. D. $1,200,000. E. an amount other than those above. Answer: (A) $200,000 Margin of safety = (Total sales units - break-even sales units) * sale price per unit = (24,000-20,000) * 50 = $200,000 Question: 50. The difference between budgeted sales revenue and break-even sales revenue is the: A. contribution margin. B. contribution-margin ratio. C. safety margin. D. target net profit. E. operating leverage. Answer: (B) Safety margin Note: Any amount of sales after break-even point is considered as part of margin of safety. Question: 51. Maxine's budget for the upcoming year revealed the following figures: If the company's break-even sales total $750,000, Maxine's safety margin would be: A. $(90,000). B. $90,000. C. $246,000. D. $336,000. E. $696,000. Answer: (C) $90,000 Margin of safety = total sales - break-even sales Question: 52. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. Brooklyn's safety margin in units is: A. (13,400). B. 0. C. 1,600. D. 13,600. E. an amount other than those above. Answer: (D) 1,600 units Break-even sales units = $360,000 / 12 = 30,00 units Safety margin = 31,600 - 30,000 = 1,600 units Question: 53. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's unit sales are 200 units less than anticipated, its breakeven point will: A. increase by $12 per unit sold. B. decrease by $12 per unit sold. C. increase by $8 per unit sold. D. decrease by $8 per unit sold. E. not change. Answer: (E) Not change Note: Break-even point point does not depend on actual sales. It is based on fixed cost and contribution margin. Question: 54. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's unit sales are 300 units more than anticipated, its break-even point will: A. increase by $12 per unit sold. B. decrease by $12 per unit sold. C. increase by $8 per unit sold. D. decrease by $8 per unit sold. E. not change. Answer: (E) Not change Note: Break-even point point does not depend on actual sales. It is based on fixed cost and contribution margin. Question: 56. Danielle sells a single product at $20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, the company will experience: A. no change in profit because a 20% drop in sales price is balanced by a 20% increase in volume. B. an $80,000 drop in profit. C. a $240,000 drop in profit. D. a $400,000 drop in profit. E. a change in profit other than those above. Answer: C. a $240,000 drop in profit. Note: Sales price per unit Sell units Sales Variable cost Contribution Fixed cost Net profit 20 1 00,000 2,0 00,000 8 00,000 1,2 00,000 4 00,000 8 00,000 16 120, 000 1,920,0 00 960, 000 960, 000 400, 000 560, 000 Question: 60. O'Dale sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. The company's weighted-average unit contribution margin is: A. $3.00. B. $3.55. C. $4.00. D. $19.35. E. an amount other than those above. Answer: B. $3.55 Sales volume sale prive variable cost contributio n weighted contribution R 16,000 14 9 5 80000 S 12,000 10 6 4 48000 T 52,000 80,000 11 8 3 156000 284000 3.55 Question: Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. 62. The weighted-average unit contribution margin is: A. $4.80. B. $9.00. C. $9.25. D. $17.00. E. an amount other than those above. Answer: B. $9.00 Note: Plain Fancy Sale price 20 35 Variable cost 12 25 contribution 8 11 weight Weigted contribution 0.6 0.4 5 4 total contribution 9 Question: 63. Assuming that the sales mix remains constant, the total number of units that Jamal must sell to break even is: A. 2,432. B. 2,647. C. 4,737. D. 5,000. E. an amount other than those above. Answer: D. 5000 Break-even sales = $45,000 /$9 = 5000 Question: 64. Assuming that the sales mix remains constant, the number of units of Plain that Jamal must sell to break even is: A. 2,000. B. 3,000. C. 3,375. D. 5,000. E. 5,625. Answer: B. 3000 Note: Sales of plain = 60% of 5,000 = 3,000 units Question: 65. Assuming that the sales mix remains constant, the number of units of Fancy that Jamal must sell to break even is: A. 2,000. B. 3,000. C. 3,375. D. 5,000. E. 5,625. Answer: A. 2,000 Sales of Plain = 40% of 5,000 = 2,000 Question: 77. The following information relates to Dazie Company: Dazie's operating leverage factor is closest to: A. 0.067. B. 0.167. C. 0.400. D. 2.500. E. 6.000. Answer: E. 6.000 Operating leverage = Contribution margin / net income = 4,800,000 / 800,000 = 6.000 Question: 78. The following information relates to Paternus Company: If a manager at Paternus desired to determine the percentage impact on income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: A. 0.25. B. 0.40. C. 2.50. D. 4.00. E. 10.00. Answer: D. 4.00 Note: At a given level of sales, Degree of operating leverage = Contribution / Net income Therefore = 4,000,000/1,000,000 = 4 Question: Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: Answer: 79. Edmonco's operating leverage factor was: A. 4. B. 5. C. 6. D. 7. E. 8. Answer: B. 5 Sales Variable cost 1,350,000 585,000 40,500 Total Contribution 184,500 810,000 540,000 Fixed cost Total Net Income Operating leverage 270,000 54,000 108,000 432,000 108,000 =540,000/108,000 =5 Question: 80. If Edmonco's sales revenues increase 15%, what will be the percentage increase in income before income taxes? A. 15%. B. 45%. C. 60%. D. 75%. E. An amount other than those above. Answer: D.75% Note: % change in net income = change in sales * operating leverage =15% *5 = 75% Question: 83. A company, subject to a 40% tax rate, desires to earn $500,000 of after-tax income. How much should the firm add to fixed costs when figuring the sales revenues necessary to produce this income level? A. $200,000. B. $300,000. C. $500,000. D. $833,333. E. $1,250,000. Answer: D. $833,333 Note = $500,000/ (1-40%) = 833,333 Question: 84. Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: How many units must Barrey sell to earn an after-tax profit of $180,000? A. 42,000. B. 45,000. C. 51,000. D. 61,000. E. An amount other than those above. Answer: D. 61,000 Pre tax profit required = 180,000/ (1- 40%) = 300,000 Total contribution required = 300,000 + 4,32,000= 732,000 Contribution per unit = (1,350,000 - 810,000) / 45000 = 12 Hence required sale = 732,000/ 12 = 61,000 units Question: 85. Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: How many units must Barrey sell to earn an after-tax profit of $225,000? A. 67,250. B. 62,250. C. 61,000. D. 51,000. E. An amount other than those above Answer: A. 67,250 Pre tax profit required = 225,000/ (1- 40%) = 375,000 Total contribution required = 375,000 + 432,000 = 807,000 Contribution per unit = (1,350,000 - 810,000) / 45000 = 12 Total required sales = 807,000 / 12 = 67, 250 units