46.The contribution margin ratio is computed as:
A. Sales minus variable costs, divided by sales.
B. Fixed costs plus variable costs, divided by sales.
C. Sales minus fixed costs, divided by sales.
D. Sales divided by variable costs.
Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month.
47.Refer to the information above. What is the contribution margin ratio of Mitchell's product?
A. 65%.
B. 80%.
C. 72%.
D. 20%.
48.Refer to the information above. What is the monthly sales volume in dollars necessary to break-even?
A. $82,500.
B. $66,500.
C. $97,059.
D. $77,500.
49.Refer to the information above. How many units must be sold each month to earn a monthly operating income of $8,000? (Round your final answer to the next whole number.)
A. 971 units.
B. 1,442 units.
C. 122,500 units.
D. 353 units.
50.Refer to the information above. What will be the monthly margin of safety (in dollars) if 1,800 units are sold each month?
A. $82,500.
B. $70,500.
C. $12,000.
D. $16,500.
51.Refer to the information above. What will be Mitchell's monthly operating income if 1,800 units are sold each month?
A. $153,000.
B. $136,500.
C. $30,600.
D. $14,100.
52.Refer to the information above. The contribution margin per unit for product no. CK74 is:
A. $26.
B. $80.19.
C. $117.
D. $63.
53.Refer to the information above. The number of units of CK74 that Ruby must sell to break-even is:
A. 30,000.
B. 20,500.
C. 8,200.
D. 12,300.
54.Refer to the information above. The dollar sales volume necessary to produce operating income of $245,000 is closest to (round your intermediate percentages to the nearest whole number):
A. $2,052,228.
B. $4,124,000.
C. $2,465,842.
D. $3,078,343.
55.In order to calculate break-even sales units, fixed costs are divided by the:
A. Contribution margin per unit.
B. Contribution margin percentage.
C. Target operating income.
D. Sales volume.