61. A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?

A. 6,500.

B. 6,000.

C. 500.

D. 5,000.

E. 5,500.

62. Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?

A. $57,500.

B. $122,500.

C. $130,000.

D. $181,250.

E. $252,500.

63. Conan Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Conan Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?

A. 1,120.

B. 8,214.

C. 11,200.

D. 12,320.

E. 14,080.

64. Ivan Company has a goal of earning $70,000 after-tax income. Ivan would need to pay $20,000 of income taxes at the target level of income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,000?

A. $23,333.

B. $36,000.

C. $300,000.

D. $353,333.

E. $420,000.

65. Use the following information to determine the margin of safety in dollars:

A. $88,500.

B. $108,500.

C. $173,600.

D. $326,400.

E. $500,000.

66. The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation's income tax rate is 40%, compute the number of units that must be sold in order to achieve a target pretax income of $130,000.

A. 53,165.

B. 81,250.

C. 36,207.

D. 50,000.

E. 58,621.

67. The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be:

A. $172,420.

B. $150,000.

C. $262,500.

D. $275,862.

E. $310,115.

68. In cost-volume-profit analysis, the unit contribution margin is:

A. Sales price per unit less cost of goods sold per unit.

B. Sales price per unit less unit fixed cost per unit.

C. Sales price per unit less total variable cost per unit.

D. Sales price per unit less unit total cost per unit.

E. The same as the contribution margin ratio.

69. The contribution margin ratio:

A. Is the percent of each sales dollar that remains after deducting total unit variable cost.

B. Is the percent of each sales dollar that remains after deducting total unit fixed cost.

C. Is the percent of each sales dollar that remains to cover fixed costs and contribute to the managers' incomes.

D. Cannot be used in conjunction with other analytical tools.

E. Is the same as the unit contribution margin.

70. Total contribution margin in dollars divided by pretax income is the:

A. Degree of operating leverage.

B. Contribution margin ratio.

C. Margin of safety.

D. Sales mix.

E. Break-even point in units.