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1)Florek Inc. produces and sells a single product. The company has provided its contribution form…

by Essaynice Tutors | Sep 9, 2023 | accounting

1)Florek Inc. produces and sells a single product. The company
has provided its contribution format income statement for
March.

Sales (6,000 units)	$	330,000
Variable expenses		210,000

Contribution margin		120,000
Fixed expenses		87,500

Net operating income	$	32,500

If the company sells 6,200 units, its net operating income should
be closest to:

$36,500

$32,500

$43,500

$33,583

2)Spartan Systems reported total sales of $310,000, at a price
of $25 and per unit variable expenses of $16, for the sales of
their single product.

	Total	Per Unit
Sales	$310,000	$25
Variable expenses	198,400	16

Contribution margin	111,600	$9

Fixed expenses	101,000

Net operating income	$10,600

What is the amount of contribution margin if sales volume
increases by 20%? (Round your intermediate calculations to
2 decimal places and your final answer to the nearest whole
number.)

rev: 03_17_2016_QC_CS-44872, 03_18_2016_QC_CS-44872

$122,000

$25,200

$133,920

$16,800

3)Bolding Inc.’s contribution margin ratio is 62% and its fixed
monthly expenses are $52,000. Assuming that the fixed monthly
expenses do not change, what is the best estimate of the company’s
net operating income in a month when sales are $146,000?

$90,520

$3,480

$38,520

$94,000

4)The Clyde Corporation’s variable expenses are 30% of sales.
Clyde Corporation is contemplating an advertising campaign that
will cost $20,000. If sales increase by $70,000, the company’s net
operating income will increase by:

$21,000

$29,000

$1,000

$63,000

Darwin Inc. sells a particular textbook for $33. Variable
expenses are $23 per book. At the current volume of 46,000 books
sold per year the company is just breaking even. Given these data,
the annual fixed expenses associated with the textbook total:

$460,000

$1,518,000

$1,978,000

$1,058,000