# Florek Inc. produces and sells a single product.

Florek Inc. produces and sells a single product. The

company has provided its contribution format income statement for March.

Sales (6,800 units)

$

408,000

Variable expenses

299,200

Contribution margin

108,800

Fixed expenses

87,900

Net operating income

$

20,900

If the company sells 7,000 units, its net operating income should be closest

to:

$24,100

$20,900

$32,900

$21,515

2.

Spartan Systems reported total sales of $340,000, at a

price of $20 and per unit variable expenses of $11, for the sales of their

single product.

Total

Per

Unit

Sales

$340,000

$20

Variable expenses

187,000

11

Contribution margin

153,000

$9

Fixed expenses

104,000

Net operating income

$49,000

What is the amount of contribution

margin if sales volume increases by 20%? (Round

your intermediate calculations to 2 decimal places and your final answer to

the nearest whole number.)

rev: 03_17_2016_QC_CS-44872, 03_18_2016_QC_CS-44872

$176,000

$86,400

$183,600

$57,600

3.

Bolding Inc.’s contribution margin ratio is 61% and its

fixed monthly expenses are $45,500. Assuming that the fixed monthly expenses

do not change, what is the best estimate of the company’s net operating

income in a month when sales are $133,000?

$81,130

$6,370

$35,630

$87,500

4.

The Clyde Corporation’s variable expenses are 40% of

sales. Clyde Corporation is contemplating an advertising campaign that will

cost $29,000. If sales increase by $79,000, the company’s net operating

income will increase by:

$31,600

$18,400

$2,600

$64,800

5.

Darwin Inc. sells a particular textbook for $29. Variable

expenses are $21 per book. At the current volume of 44,000 books sold per

year the company is just breaking even. Given these data, the annual fixed

expenses associated with the textbook total:

$352,000

$1,276,000

$1,628,000

$924,000

6.

Wyly Inc. produces and sells a single product. The selling

price of the product is $195.00 per unit and its variable cost is $78.00 per

unit. The fixed expense is $348,660 per month.

The break-even in monthly dollar

sales is closest to: (Round your intermediate

calculations to 2 decimal places.)

$871,650

$522,990

$581,100

$348,660

7.

Morganti Corporation sells a product for $145 per unit.

The product’s current sales are 41,300 units and its break-even sales are

32,625 units. What is the margin of safety in dollars?

$3,736,965

$5,988,500

$4,730,625

$1,257,875

8.

Lasseter Corporation has provided its contribution format

income statement for August. The company produces and sells a single product.

Sales (5,200 units)

$

176,800

Variable expenses

78,000

Contribution margin

98,800

Fixed expenses

46,400

Net operating income

$

52,400

If the company sells 5,300 units, its total contribution margin

should be closest to:

$53,408

$98,800

$100,700

$102,200

9.

Carlton Corporation sells a single product at a selling price of

$40 per unit. Variable expenses are $22 per unit and fixed expenses are

$82,800. Carlton’s break-even point is:

4,600

units

3,764

units

5,000

units

2,070

units

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