74. Sanes Corporation produces and sells a single product. Data concerning that product
appear below:
The unit sales to attain the company's monthly target profit of $19,000 is closest to:
A. 3,42
6
B. 5,83
3
C. 3,80
6
D. 2,15
8
75. A product sells for $10 per unit and has variable expenses of $6 per unit. Fixed expenses
total $45,000 per month. How many units of the product must be sold each month to
yield a monthly profit of $15,000?
A. 6,000
units
B. 3,750
units
C. 15,000
units
D. 10,000
units
76. Palomo Corporation sells a product for $170 per unit. The product's current sales are
35,200 units and its break-even sales are 25,344 units. The margin of safety as a
percentage of sales is closest to:
A. 72
%
B. 39
%
C. 28
%
D. 61
%
,77. Malley Corporation has provided the following data concerning its only product:
What is the margin of safety in dollars?
A. $1,390,0
00
B. $562,95
0
C. $2,085,0
00
D. $1,522,0
50
78. Renfrew Corporation has provided the following data concerning its only product:
The margin of safety as a percentage of sales is closest to:
A. 29
%
B. 59
%
C. 71
%
D. 41
%
,79. Morganti Corporation sells a product for $140 per unit. The product's current sales are
40,700 units and its break-even sales are 31,339 units.
What is the margin of safety in dollars?
A. $3,798,6
67
B. $5,698,0
00
C. $4,387,4
60
D. $1,310,5
40
80. Sales in North Corporation increased from $60,000 per year to $63,000 per year while
net operating income increased from $10,000 to $12,000. Given this data, the
company's degree of operating leverage must have been:
A. 4.
0
B. 1.
5
C. 5.
0
D. 21.
0
81. Alpha Corporation reported the following data for its most recent year: sales, $500,000;
variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of
operating leverage is:
A. 1
0
B. 2
C. 4
D. 2.
5
, 82. Tribley Inc. has an operating leverage of 8.0. If the company's sales increase by 19%, its
net operating income should increase by about:
A. 152.0
%
B. 19.0
%
C. 8.0
%
D. 42.1
%
83. Cleckley Corporation's operating leverage is 5.9. If the company's sales increase by 19%,
its net operating income should increase by about:
A. 5.9
%
B. 31.1
%
C. 19.0
%
D. 112.1
%
84. Brown Corporation has sales of 2,000 units at $70 per unit. Variable expenses are 40% of
the selling price. If total fixed expenses are $44,000, the degree of operating leverage
is:
A. 0.7
9
B. 1.4
0
C. 3.5
0
D. 2.1
0
appear below:
The unit sales to attain the company's monthly target profit of $19,000 is closest to:
A. 3,42
6
B. 5,83
3
C. 3,80
6
D. 2,15
8
75. A product sells for $10 per unit and has variable expenses of $6 per unit. Fixed expenses
total $45,000 per month. How many units of the product must be sold each month to
yield a monthly profit of $15,000?
A. 6,000
units
B. 3,750
units
C. 15,000
units
D. 10,000
units
76. Palomo Corporation sells a product for $170 per unit. The product's current sales are
35,200 units and its break-even sales are 25,344 units. The margin of safety as a
percentage of sales is closest to:
A. 72
%
B. 39
%
C. 28
%
D. 61
%
,77. Malley Corporation has provided the following data concerning its only product:
What is the margin of safety in dollars?
A. $1,390,0
00
B. $562,95
0
C. $2,085,0
00
D. $1,522,0
50
78. Renfrew Corporation has provided the following data concerning its only product:
The margin of safety as a percentage of sales is closest to:
A. 29
%
B. 59
%
C. 71
%
D. 41
%
,79. Morganti Corporation sells a product for $140 per unit. The product's current sales are
40,700 units and its break-even sales are 31,339 units.
What is the margin of safety in dollars?
A. $3,798,6
67
B. $5,698,0
00
C. $4,387,4
60
D. $1,310,5
40
80. Sales in North Corporation increased from $60,000 per year to $63,000 per year while
net operating income increased from $10,000 to $12,000. Given this data, the
company's degree of operating leverage must have been:
A. 4.
0
B. 1.
5
C. 5.
0
D. 21.
0
81. Alpha Corporation reported the following data for its most recent year: sales, $500,000;
variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of
operating leverage is:
A. 1
0
B. 2
C. 4
D. 2.
5
, 82. Tribley Inc. has an operating leverage of 8.0. If the company's sales increase by 19%, its
net operating income should increase by about:
A. 152.0
%
B. 19.0
%
C. 8.0
%
D. 42.1
%
83. Cleckley Corporation's operating leverage is 5.9. If the company's sales increase by 19%,
its net operating income should increase by about:
A. 5.9
%
B. 31.1
%
C. 19.0
%
D. 112.1
%
84. Brown Corporation has sales of 2,000 units at $70 per unit. Variable expenses are 40% of
the selling price. If total fixed expenses are $44,000, the degree of operating leverage
is:
A. 0.7
9
B. 1.4
0
C. 3.5
0
D. 2.1
0
