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Electro Co. Contribution Income Statement For the financial year ended June 30, 2020 Total. .Per Unit Sales (400 TVs) ....... ...... $100,000.................. $250 Variable expenses. 60,000.... 150 Contribution margin... 40,000..... $100 Fixed expenses.. 32,000 Net operating income. $ 8.000 1- The contribution margin ratio is ) Nothing mentioned 0 O %20 0 %37.5 O %40 O %35 C%22 2- If Electro Co. plans a $25,000 increase in sales during the coming year, the target operating profit should increase by: O 16,000 O 12.000 15.000 9.000 o 8,500 10,000 3- The break-even point in unit is 300 O 318 250 0 275 o Nothing mentioned (site () 320 4- The break-even point in sales $ is 0 72,000 0 100.000 O ) ) Nothing mentioned O 80,000 75.000 55.000 5- The sales volume (in unit) needed to attain $7500 target operating profit is O 385 O 390 O 400 O 395 ( ) Nothing mentioned 380 0 375 6- The dollar sales needed to attain $7525 target operating profit is ) Nothing mentioned O 95,500 99.910.5 @ 98,812.5 0 95.250.5 0 101,500 7- Margin of safety in dollars is ) O Nothing mentioned 20,000 250,000 O 200.000 O 30.000 325.000 300.000 8- Margin of safety (in dollars) percentage is: O %25 O %22 %35 9637.5 %40 O%20 9- Degree of operating leverage: O 5 07 0 6.5 0 5.5 a) Nothing mentioned (... 12) () 4.5 10- If sales increase by 13.2%, the Percentage change in net operating income is 9640 O %72 0966 0 %37.5 %88 %75 Nothing mentioned (L-) 11- If sales increase by 18%, the net operating income will be doubled. O True False 12- What is the profit impact if the company decided to: (1) pays a $20 sales commission per TV sold instead of paying salespersons flat salaries that currently total $11,000 per month, and (2) increases unit sales from 400 to 525 TVs? O 25,000 O 21,000 O30,000 o 18.000 o 20.000 ) ) O Nothing mentioned (SL) 32.000 22.000

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