Question : 66.Refer to the information above. At the reduced selling price : 1259649

 

 

66.Refer to the information above. At the reduced selling price of $65 per unit, what dollar volume of sales per month is required to break-even? (Round your intermediate percentage to one decimal place and final answer to nearest whole dollar.)   

A. $27,842.

 

B. $22,727.

 

C. $21,090.

 

D. $29,540.

 

 

 

Grand Gimmicks Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing the selling price to $190 per unit. Assume that the variable cost per unit of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price.

 

67.Refer to the information above. At the current selling price of $170 per unit, the contribution margin ratio is closest to:   

A. 23.5%.

 

B. 76%.

 

C. 34%.

 

D. 21%.

 

 

 

68.Refer to the information above. At the current selling price of $170 per unit, closest to what dollar volume of sales per month is required for Grand Gimmicks to break-even? (Round your intermediate percentage to one decimal place.)   

A. $6,178.

 

B. $8,299.

 

C. $26,553.

 

D. $20,800.

 

 

 

69.Refer to the information above. At the current selling price of $170 per unit, closest to what dollar volume of sales per month is necessary for Grand Gimmicks to generate monthly operating income of $12,000? (Round your intermediate percentage to one decimal place.)   

A. $24,162.

 

B. $51,063.

 

C. $58,838.

 

D. $77,617.

 

 

 

70.Refer to the information above. At the proposed increased selling price of $190 per unit, the contribution margin ratio is closest to:   

A. 60%.

 

B. 31.6%.

 

C. 68.4%.

 

D. 50%.

 

 

 

71.Refer to the information above. At the proposed increased selling price of $190 per unit, closest to what dollar volume of sales per month is required to break-even? (Round your intermediate percentage to one decimal place.)   

A. $19,747.

 

B. $10,400.

 

C. $9,123.

 

D. $18,480.

 

 

 

72.The margin of safety is calculated by:   

A. Dividing fixed costs plus target income by the contribution margin.

 

B. Subtracting break-even income from current income.

 

C. Subtracting break-even sales from current sales.

 

D. Subtracting fixed costs from current contribution margin.

 

 

 

 

73.The dollar amount by which sales can decline before an operating loss is incurred is called the:   

A. Contribution margin.

 

B. Contribution margin ratio.

 

C. Margin of safety.

 

D. Relevant range.

 

 

 

 

74.A company with an operating income of $72,000 and a contribution margin ratio of 56% has a margin of safety of: (rounded)   

A. $40,320.

 

B. $128,571.

 

C. $163,636.

 

D. It is not possible to determine the margin of safety from the information provided.

 

 

 

75.In the area of cost-volume-profit analysis, the contribution margin ratio shows how much each dollar of sales contributes to:   

A. Cover the fixed costs of the business and providing operating income.

 

B. Fixed expenses and variable expenses.

 

C. Variable expenses and interest charges.

 

D. Variable expenses when production is at normal capacity.