Question : 51.              The required sales in units to achieve a target : 1311744

51.              The required sales in units to achieve a target net income is

a.(sales + target net income) divided by contribution margin per unit.

b.(sales + target net income) divided by contribution margin ratio.

c.(fixed cost + target net income) divided by contribution margin per unit.

d.(fixed cost + target net income) divided by contribution margin ratio.

52.              For Wickham Co., sales is $2,000,000, fixed expenses are $600,000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $400,000?

a.$1,111,111

b.$1,666,666

c.$2,777,778

d.$5,555,556

53.              Warner Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each), when the break-even point was 75,000 units. Warner’s margin of safety ratio is

a.25%.

b.33%.

c.75%.

d.125%.

54.              For Wilder Corporation, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. What is the margin of safety in dollars?

a.$60,000

b.$300,000

c.$540,000

d.$840,000

55.              Margin of safety in dollars is

a.expected sales divided by break-even sales.

b.expected sales less break-even sales.

c.actual sales less expected sales.

d.expected sales less actual sales.

56.              The margin of safety ratio is

a.expected sales divided by break-even sales.

b.expected sales less break-even sales.

c.margin of safety in dollars divided by expected sales.

d.margin of safety in dollars divided by break-even sales.

57.              In 2012, Hagar Corp. sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $455,000. The same variable expenses per unit and fixed expenses are expected for 2013. If Hagar cuts selling price by 4%, what is Hagar’s break-even point in units for 2013?

a.3,033

b.3,159

c.3,360

d.3,500

58.              In 2012, Carow sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $250,000. The same selling price is expected for 2013. Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Carow’s break-even point in units for 2013?

a.1,000

b.1,200

c.1,250

d.1,500

59.              In 2012, Raleigh sold 1,000 units at $500 each, and earned net income of $50,000. Variable expenses were $300 per unit, and fixed expenses were $150,000. The same selling price is expected for 2013. Raleigh’s variable cost per unit will rise by 10% in 2013 due to increasing material costs, so they are tentatively planning to cut fixed costs by $15,000. How many units must Raleigh sell in 2013 to maintain the same income level as 2012?

a.794

b.971

c.1,176

d.1,088

60.              Sales mix is

a.the relative percentage in which a company sells its multiple products.

b.the trend of sales over recent periods.

c.the mix of variable and fixed expenses in relation to sales.

d.a measure of leverage used by the company.