Question 1

Dickus Corporation's only product sells for $100 per unit. Its current sales are 35,600 units and its break-even sales are 29,192 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Dickus Corporation's only product sells for $100...

Question 2

The contribution margin ratio of Kuck Corporation's only product is 75%. The company's monthly fixed expense is $585,000 and the company's monthly target profit is $11,250.
Required:
Determine the dollar sales to attain the company's target profit. Show your work!

Accepted Answer

The answer of The contribution margin ratio of Kuck Corporation's...

Question 3

Rachal Corporation produces and sells a single product whose selling price is $150.00 per unit and whose variable expense is $57.00 per unit. The company's monthly fixed expense is $381,300.
Required:
a. Assume the company's monthly target profit is $9,300. Determine the unit sales to attain that target profit. Show your work!
b. Assume the company's monthly target profit is $18,600. Determine the dollar sales to attain that target profit. Show your work!

Accepted Answer

The answer of Rachal Corporation produces and sells a single...

Question 4

Malensek International, Inc., produces and sells a single product. The product sells for $240.00 per unit and its variable expense is $55.20 per unit. The company's monthly fixed expense is $249,480.
Required:
Determine the monthly break-even in total dollar sales. Show your work!

Accepted Answer

The answer of Malensek International, Inc., produces and sells a...

Question 5

In the most recent month, Sardella Corporation's total contribution margin was $46,200 and its net operating income $13,200.
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 10% increase in sales.

Accepted Answer

The answer of In the most recent month, Sardella Corporation's...

Question 6

Frisch Corporation produces and sells a single product. Data concerning that product appear below:
  Required:
Determine the monthly break-even in either unit or total dollar sales. Show your work!

Accepted Answer

The answer of Frisch Corporation produces and sells a single...

Question 7

Knezevich Corporation makes a product that sells for $230 per unit. The product's current sales are 36,900 units and its break-even sales are 32,103 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Knezevich Corporation makes a product that sells...

Question 8

Hamernik, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $72.00 per unit. The company's fixed expense is $372,960 per month.
Required:
Determine the monthly break-even in either unit or total dollar sales. Show your work!

Accepted Answer

The answer of Hamernik, Inc., produces and sells a single...

Question 9

Bussy Corporation produces and sells a single product whose contribution margin ratio is 54%. The company's monthly fixed expense is $561,600 and the company's monthly target profit is $34,560.
Required:
Determine the dollar sales to attain the company's target profit. Show your work!

Accepted Answer

The answer of Bussy Corporation produces and sells a single...

Question 10

Cleghorn Corporation produces and sells a single product. Data concerning that product appear below:
  Required:
Determine the monthly break-even in total dollar sales. Show your work!

Accepted Answer

The answer of Cleghorn Corporation produces and sells a single...

Question 11

Yamakawa Corporation produces and sells a single product. Data concerning that product appear below:
  Required:
Determine the monthly break-even in unit sales. Show your work!

Accepted Answer

The answer of Yamakawa Corporation produces and sells a single...

Question 12

Brihon Corporation produces and sells a single product. Data concerning that product appear below:
  Required:
a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit. Show your work!
b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit. Show your work!

Accepted Answer

The answer of Brihon Corporation produces and sells a single...

Question 13

Liz, Inc., produces and sells a single product. The product sells for $130.00 per unit and its variable expense is $48.10 per unit. The company's monthly fixed expense is $223,587.
Required:
Determine the monthly break-even in unit sales. Show your work!

Accepted Answer

The answer of Liz, Inc., produces and sells a single...

Question 14

Veren Inc. produces and sells two products. During the most recent month, Product F73A's sales were $27,000 and its variable expenses were $9,450. Product L75P's sales were $14,000 and its variable expenses were $5,310. The company's fixed expenses were $21,060.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product F73A with no change in total sales, what will happen to the break-even point for the company? Explain.

Accepted Answer

The answer of Veren Inc. produces and sells two products....

Question 15

Hawver Corporation produces and sells a single product. Data concerning that product appear below:
  Required:
Assume the company's monthly target profit is $19,800. Determine the unit sales to attain that target profit. Show your work!

Accepted Answer

The answer of Hawver Corporation produces and sells a single...

Question 16

Mcquage Corporation has provided its contribution format income statement for July.
  Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 19% increase in sales.

Accepted Answer

The answer of Mcquage Corporation has provided its contribution format...

Question 17

Brancati Inc. produces and sells two products. Data concerning those products for the most recent month appear below:
  Fixed expenses for the entire company were $32,860.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product W07C with no change in total sales, what will happen to the break-even point for the company? Explain.

Accepted Answer

The answer of Brancati Inc. produces and sells two products....

Question 18

Lubke Corporation's contribution format income statement for the most recent month follows:
  Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales.

Accepted Answer

The answer of Lubke Corporation's contribution format income statement for...

Question 19

The selling price of Old Corporation's only product is $180.00 per unit and its variable expense is $37.80 per unit. The company's monthly fixed expense is $483,480.
Required:
Assume the company's monthly target profit is $56,880. Determine the unit sales to attain that target profit. Show your work!

Accepted Answer

The answer of The selling price of Old Corporation's only...

Question 20

Haslem Inc. has provided the following data concerning its only product:
  Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Haslem Inc. has provided the following data...

Quiz 2: Costvolumeprofit Relationships

Dickus Corporation's only product sells for $100 per unit. Its current sales are 35,600 units and its break-even sales are 29,192 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

The contribution margin ratio of Kuck Corporation's only product is 75%. The company's monthly fixed expense is $585,000 and the company's monthly target profit is $11,250. Required: Determine the dollar sales to attain the company's target profit. Show your work!

Malensek International, Inc., produces and sells a single product. The product sells for $240.00 per unit and its variable expense is $55.20 per unit. The company's monthly fixed expense is $249,480. Required: Determine the monthly break-even in total dollar sales. Show your work!

Frisch Corporation produces and sells a single product. Data concerning that product appear below: Required: Determine the monthly break-even in either unit or total dollar sales. Show your work!

Knezevich Corporation makes a product that sells for $230 per unit. The product's current sales are 36,900 units and its break-even sales are 32,103 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

Hamernik, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $72.00 per unit. The company's fixed expense is $372,960 per month. Required: Determine the monthly break-even in either unit or total dollar sales. Show your work!

Bussy Corporation produces and sells a single product whose contribution margin ratio is 54%. The company's monthly fixed expense is $561,600 and the company's monthly target profit is $34,560. Required: Determine the dollar sales to attain the company's target profit. Show your work!

Cleghorn Corporation produces and sells a single product. Data concerning that product appear below: Required: Determine the monthly break-even in total dollar sales. Show your work!

Yamakawa Corporation produces and sells a single product. Data concerning that product appear below: Required: Determine the monthly break-even in unit sales. Show your work!

Liz, Inc., produces and sells a single product. The product sells for $130.00 per unit and its variable expense is $48.10 per unit. The company's monthly fixed expense is $223,587. Required: Determine the monthly break-even in unit sales. Show your work!

Hawver Corporation produces and sells a single product. Data concerning that product appear below: Required: Assume the company's monthly target profit is $19,800. Determine the unit sales to attain that target profit. Show your work!

Haslem Inc. has provided the following data concerning its only product: Required: Compute the margin of safety in both dollars and as a percentage of sales.