4The records of the Dodge Corporation show the following res

4The records of the Dodge Corporation show the following results for the most recent year at a f4. level of 16,000 units of sales: Total Sales (16,000 units) $256,000 Total Variable expenses $160,000 Net operating income $32,000 Given these data, the unit contribution margin was: A. $16 B. $4 ?. $2 D. $6 15. Minist Corporation sells a single product for $15 per unit. Last year, the company\'s sales revenue was $225,000 and its net operating income (sales-variable costs-fixed costs) was $18,000. If fixed expenses totaled $72,000 for the year, the break-even point in units was: A. 15,000 B. 9,900 C. 14,100 D. 12,000 Last year Easton Corporation reported sales of $720,000, a total contribution margin ratio (CTotal Sales-Total Variable Costs)/Total Sales) of 30%. The company also posted a net loss of $24,000. Based on this information, the break-even point in sales dollars was: A. $640,000 B. $880,000 C. $744,000 D. $800,000 16. Holdt Inc. produces and sells a single product. The selling price of the product is $230.00 per unit and its variable cost is $66.70 per unit. The fixed expense is $212,290 per month. The break-even 17. in monthly units is closest to: A. 1,300 B. 3,183 C. 1,802 D. 923 7

Solution

Answers

Question 14

A

Total Sales

$    2,56,000.00

B

Total variable expenses

$    1,60,000.00

C = A - B

Contribution margin

$       96,000.00

D

Units sold

16000

E = C/D

Unit Contribution margin

$                  6.00

Answer

Option D: $ 6

Question 15

A

Sales

$    2,25,000.00

B

Net Operating Income

$       18,000.00

C=A-B

Total Cost

$    2,07,000.00

D

Fixed Cost

$       72,000.00

E=C-D

Variable cost

$    1,35,000.00

F=A-E

Contribution margin

$       90,000.00

G=F/A

Contribution margin ratio

40%

H=D/G

Break Even in $

$    1,80,000.00

I

Unit Sale price

$                15.00

J=H/I

Break Even point in Units

12000

Answer

Option D: 12,000 units

Question 16

A

Sales

$    7,20,000.00

B= A X 30%

Contribution margin

$    2,16,000.00

C

Net Loss

$       24,000.00

D=B+C

Fixed Cost

$    2,40,000.00

E=D/30%

Break Even in Sales dollars

$    8,00,000.00

Answer

Option D: $ 800,000

Question 17

A

Unit Sale price

$             230.00

B

Unit Variable cost

$                66.70

C=A-B

Unit Contribution margin

$             163.30

D

Fixed cost

$    2,12,290.00

E=D/C

Break Even in Units

1300

Answer

Option A: 1,300 units

Question 14
A	Total Sales	$    2,56,000.00
B	Total variable expenses	$    1,60,000.00
C = A - B	Contribution margin	$       96,000.00
D	Units sold	16000
E = C/D	Unit Contribution margin	$                  6.00
	Answer	Option D: $ 6
Question 15
A	Sales	$    2,25,000.00
B	Net Operating Income	$       18,000.00
C=A-B	Total Cost	$    2,07,000.00
D	Fixed Cost	$       72,000.00
E=C-D	Variable cost	$    1,35,000.00
F=A-E	Contribution margin	$       90,000.00
G=F/A	Contribution margin ratio	40%
H=D/G	Break Even in $	$    1,80,000.00
I	Unit Sale price	$                15.00
J=H/I	Break Even point in Units	12000
	Answer	Option D: 12,000 units
Question 16
A	Sales	$    7,20,000.00
B= A X 30%	Contribution margin	$    2,16,000.00
C	Net Loss	$       24,000.00
D=B+C	Fixed Cost	$    2,40,000.00
E=D/30%	Break Even in Sales dollars	$    8,00,000.00
	Answer	Option D: $ 800,000
Question 17
A	Unit Sale price	$             230.00
B	Unit Variable cost	$                66.70
C=A-B	Unit Contribution margin	$             163.30
D	Fixed cost	$    2,12,290.00
E=D/C	Break Even in Units	1300
	Answer	Option A: 1,300 units