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  3. 1. during march, astro company had sales of $5,000

1. During March, Astro Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed...

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Accounting

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1. During March, Astro Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. Assume that cost behavior and unit selling price remain unchanged during April. To generate a Net Income Before Tax =$300,000 for April, Astro sales would have to be: (A) $3,750,000 (B) $4,050,000 (C) $4,500,000 (D) $4,800,000 2. Bearcat Furniture Company produces an Oak Wood chair and a Chestnut Wood chair. The Oak Wood model sells for $60 and the Chestnut Wood chair sells for $100. Variable expense are $36/ unit for the Oak Wood chair and \$40/unit for the Chestnut Wood chair. Bearcat's sales mix is 5:1 ( Oakwood; Chestnut Wood). Fixed expenses are set at a level of \$ 135,000/year. Bearcat's overall contribution margin ratio based on the sales mix is: (A) 45% (B) 50% (C) 60% (D) None of these 3. Last year, Cincy Corporation reported a Net Income Before Tax(NIBT) of $70,000 when sales were $520,000 and its contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what will sales have to be for Cincy Corporation to generate NIBT of $80,000 ? (A) $600,000 (B) $570,000 (C) $562,500 (D) $625,0006

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