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If the contribution margin ratio is 45%, target operating income is $50,000, and the sales revenue needed to achieve the target operating income is $300,000, what are total fixed expenses?

Select one:

a. $22,500

b. $85,000

c. $185,000

d. $135,000

Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3,750. What is Yellow Company's operating leverage factor at the target level of operating income?

Select one:

a. 1.25

b. 0.20

c. (3.00)

d. 5.00

Neeley Grocery has a monthly target operating income of $25,000. Variable expenses are 20% of sales and monthly fixed expenses are $15,000. What is the monthly margin of safety as a percentage of target sales in dollars?

Select one:

a. 137.50%

b. 62.50%

c. 80.00%

d. 166.67%

SportSupplies Corporation has budgeted purchases of inventory for December of $140,000. Expected beginning inventory on December 1 and ending inventory on December 31 are $90,000 and $120,000, respectively. If cost of goods sold averages 88% of sales, what are budgeted sales for December?

Select one:

a. $125,000

b. $96,800

c. $193,182

d. $397,727

Lakewood Jet Skis has budgeted sales for June and July at $420,000 and $480,000, respectively. Sales are 75% credit, of which 40% is collected in the month of sale and 60% is collected in the following month. What is the accounts receivable balance on July 31?

Select one:

a. $189,000

b. $288,000

c. $216,000

d. $360,000

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