# 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
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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