Accounting 102 - Managerial Accounting » Fall 2022 » CH 6 Quiz

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Question #1
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (6,700 units) $ 469,000 Variable expenses 335,000 Contribution margin 134,000 Fixed expenses 103,500 Net operating income $ 30,500 If the company sells 6,600 units, its net operating income should be closest to: (Do not round intermediate calculations.)
A.   $26,000
B.   $28,500
C.   $29,979
D.   $30,500
Question #2
Decaprio Incorporated produces and sells a single product. The company has provided its contribution format income statement for June. Sales (6,300 units) $ 220,500 Variable expenses 113,400 Contribution margin 107,100 Fixed expenses 88,100 Net operating income $ 19,000 If the company sells 6,500 units, its net operating income should be closest to: (Do not round intermediate calculations.)
A.   $26,000
B.   $19,603
C.   $19,000
D.   $22,400
Question #3
Jilk Incorporated's contribution margin ratio is 61% and its fixed monthly expenses are $51,500. 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 $145,000?
A.   $5,050
B.   $88,450
C.   $36,950
D.   $93,500
Question #4
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. 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 $92,000?
A.   $4,040
B.   $62,000
C.   $27,960
D.   $57,960
Question #5
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Particulars - Per Unit - Percent of Sales Selling price -$ 140 - 100% Variable expenses - 84 - 60% Contribution margin -$ 56 - 40% The company is currently selling 6,700 units per month. Fixed expenses are $185,000 per month. The marketing manager believes that a $5,500 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
A.   decrease of $5,500
B.   increase of $11,200
C.   increase of $5,700
D.   decrease of $5,700
Question #6
Data concerning Follick Corporation's single product appear below: Selling price per unit - $ 320.00 Variable expense per unit - $ 76.80 Fixed expense per month - $ 170,240 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
A.   $170,240
B.   $224,000
C.   $277,760
D.   $448,000
Question #7
Wimpy Incorporated produces and sells a single product. The selling price of the product is $245.00 per unit and its variable cost is $73.50 per unit. The fixed expense is $417,270 per month. The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
A.   $417,270
B.   $1,390,900
C.   $596,100
D.   $973,630
Question #8
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit - $ 210.00 Variable expense per unit - $ 96.50 Fixed expense per month - $ 444,990 The unit sales to attain the company's monthly target profit of $29,000 is closest to: (Do not round intermediate calculations.)
A.   2,257 
B.   4,176
C.   3,921 
D.   4,912 
Question #9
Mcmurtry Corporation sells a product for $170 per unit. The product's current sales are 12,800 units and its break-even sales are 11,136 units. The margin of safety as a percentage of sales is closest to:
A.   15%
B.   13%
C.   87%
D.   85%
Question #10
Sarratt Corporation's contribution margin ratio is 71% and its fixed monthly expenses are $51,000. Assume that the company's sales for May are expected to be $110,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.
A.   Net operating income = $27,100
B.   Net operating income = $26,000
C.   Net operating income = $54,200
D.   Net operating income = $21,700

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