71. Refer to the above information. The dollar sales volume necessary to produce operating income of $245,000 is closest to:
A. $2,052,228.
B. $4,124,000.
C. $2,465,842.
D. $3,078,343.
Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling price, and fixed costs are $12,000 per month. Management has decided to reduce the selling price to $65 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.
72. Refer to the above information. At the current selling price of $70 per unit, the contribution margin ratio is:
A. 60%.
B. 40%.
C. 67%.
D. 120%.
73. Refer to the above information. At the current selling price of $70 per unit, the dollar volume of sales per month necessary for Accents to break-even is:
A. $12,000.
B. $20,000.
C. $30,000.
D. Some other amount.
74. Refer to the above information. At the current selling price of $70 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $15,000?
A. $25,000.
B. $30,000.
C. $45,000.
D. Some other amount.
75. Refer to the above information. At the reduced selling price of $65 per unit, the contribution margin ratio is (rounded, if necessary):
A. 43.1%.
B. 56.9%.
C. 52.8%.
D. Some other percentage.
76. Refer to the above information. At the reduced selling price of $65 per unit, what dollar volume of sales per month is required to break-even? (Rounded)
A. $27,842.
B. $22,727.
C. $21,090.
D. $27,842.
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 cost of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price.
77. Refer to the above information. At the current selling price of $170 per unit, the contribution margin ratio is:
A. 23.5%.
B. 76%.
C. 34%.
D. 21%.
78. Refer to the above information. At the current selling price of $170 per unit, what dollar volume of sales per month is required for Grand Gimmicks to break-even?
A. $6,178.
B. $8,299.
C. $26,553.
D. $20,800.
79. Refer to the above information. At the current selling price of $170 per unit, what dollar volume of sales per month is necessary for Grand Gimmicks to generate monthly operating income of $12,000?
A. $24,162.
B. $51,063.
C. $58,838
D. $77,617.
80. Refer to the above information. At the proposed increased selling price of $190 per unit, the contribution margin ratio is:
A. 60%.
B. 31.6%.
C. 68.4%.
D. 50%.