Reference no: EM131881030

Question: 1. Bowe Corporation's fixed monthly expenses are $24,000 and its contribution margin ratio is 65%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $80,000?

2. Solen Corporation's break-even-point in sales is $920,000, and its variable expenses are 70% of sales. If the company lost $42,000 last year, sales must have amounted to:

$878,000

$836,000

$780,000

$602,000

3. Last year Easton Corporation reported sales of $790,000, a contribution margin ratio of 20% and a net loss of $31,000. Based on this information, the break-even point was:

$635,000

$1,100,000

$821,000

$945,000

4. The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $22,000. If sales increase by $72,000, the company's net operating income will increase by:

$28,800

$21,200

$6,800

$56,400

5. Closser Corporation produces and sells two products. In the most recent month, Product M50S had sales of $19,000 and variable expenses of $10,030. Product H50G had sales of $32,000 and variable expenses of $15,980. The fixed expenses of the entire company were $45,940. 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.)

$71,950

$93,715

$45,940

$93,755