Reference no: EM132069489

Questions -

Q1. Montoya Manufacturing has fixed costs of $3,000,000 and variable costs are 40% of sales. What are the required sales if Montoya desires net income of $300,000?

a. $5,500,000

b. $5,000,000

c. $8,250,000

d. $7,500,000

Q2. The following monthly data are available for Lumberyard Company. which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 3,000 units. How much is the margin of safety for the company for June?

a. $42,000

b. $63,000

c. $84,000

d. $1,500

Q3. Chung, Inc. sells 100,000 wrenches for $24 per unit. Fixed costs are $700,000 and net income is $500,000. What should be reported as variable expenses in the CVP income statement?

a. $1,080,000

b. $1,200,000

c. $1,900,000

d. $1,700,000