Reference no: EM131798183

Questions -

Q1. Perona Corporation produces and sells a single product. Data concerning that product appear below:

selling price per unit 160.00

variable expense per unit 70.40

fxed expense per month 385280

The unit sales to attain the company's monthly target profit of $9,000 is closest to:

A 2,464 units

B 4,400 units

C 4,155 units

D 5,601 units

Q2. The following is last month's contribution format income statement:

sales (12000units) 1200000

variable expenses 700000

contribution margin 500000

fixed expenses 300000

net operating income 200000

What is the company's margin of safety percentage to the nearest whole percent?

A 20%

B 40%

C 42%

D 17%