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QUESTION 1

The contribution margin ratio of Thronson Corporation's only product is 60%. The company's monthly fixed expense is $456,600 and the company's monthly target profit is $42,600.

Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

QUESTION 2

Puchalla Corporation sells a product for $160 per unit. The product's current sales are 12,700 units and its break-even sales are 11,176 units. The margin of safety as a percentage of sales is closest to:

14%

88%

86%

12%

QUESTION 3

Kendall Company has sales of 1,600 units at $50 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $48,000, the degree of operating leverage is:

rev: 03_06_2012

7.00

3.00

10.00

3.17

QUESTION 4

Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $31,500 and variable expenses of $8,540. Product V04P had sales of $52,500 and variable expenses of $36,820. The fixed expenses of the entire company were $35,680.

The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

$84,000

$77,565

$35,680

$32,093

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