8. Bolding Inc.'s contribution margin ratio is 62% and its fixed monthly expenses are $46,500. 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 $135,000?

A. $83,700

B. $4,800

C. $37,200

D. $88,500

9. Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below

	Per Unit	Percent of Sales
Selling price	$150	100%
Variable expenses	75	50%
Contribution margin	$ 75	50%

The company is currently selling 5,600 units per month. Fixed expenses are $363,400 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

A. Decrease of $6,600

B. Decrease of $3,150

C. Increase of $3,150

D. Increase of $9,750

12. Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit	$	290.00
Variable expense per unit	$	78.30
Fixed expense per month	$	161,330

The break-even in monthly dollar sales is closest to:

A. $221,000

B. $280,670

C. $161,330

D. $442,000

13. Wyly Inc. produces and sells a single product. The selling price of the product is $245.00 per unit and its variable cost is $73.50 per unit. The fixed expense is $417,270 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

A. $1,390,900

B. $973,630

C. $596,100

D. $417,270

14. Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit	$	205.00
Variable expense per unit	$	96.00
Fixed expense per month	$	443,440

The unit sales to attain the company's monthly target profit of $28,000 is closest to: (Do not round your intermediate calculations.)

A. 4,068

B. 2,300

C. 4,911

D. 4,325

16. Morganti Corporation sells a product for $215 per unit. The product's current sales are 42,700 units and its break-even sales are 36,195 units. What is the margin of safety in dollars?

A. $6,596,412

B. $9,180,500

C. $7,781,925

D. $1,398,575

17. Alpha Corporation reported the following data for its most recent year: sales, $650,000; variable expenses, $500,000; and fixed expenses, $100,000. The company's degree of operating leverage is:

A. 13

B. 5

C. 3

D. 4.3

18. Sperberg Corporation's operating leverage is 4.6. If the company's sales increase by 11%, its net operating income should increase by about:

A. 50.6%

B. 38.0%

C. 2.4%

D. 11.0%

19. A cement manufacturer has supplied the following data

Tons of cement produced and sold	268,000
Sales revenue	$1,098,800
Variable manufacturing expense	$437,000
Fixed manufacturing expense	$234,000
Variable selling and administrative expense	$99,000
Fixed selling and administrative expense	$224,000
Net operating income	$104,800

What is the company's unit contribution margin? (Do not round your intermediate calculations.)

A. $2.00 per unit

B. $2.10 per unit

C. $4.10 per unit

D. $0.12 per unit

20. A cement manufacturer has supplied the following data:

Tons of cement produced and sold	235,000
Sales revenue	$939,000
Variable manufacturing expense	$255,000
Fixed manufacturing expense	$289,000
Variable selling and administrative expense	$120,600
Fixed selling and administrative expense	$85,000
Net operating income	$189,400

The company's contribution margin ratio is closest to:

A. 42.1%

B. 60.0%

C. 69.2%

D. 20.2%

23. Blue Corporation's standards call for 3,000 direct labor-hours to produce 1,200 units of product. During May 1,000 units were produced and the company worked 1,100 direct labor-hours. The standard hours allowed for May production would be:

A. 3,000 hours

B. 1,100 hours

C. 2,500 hours

D. 2,000 hours

24.The following labor standards have been established for a particular product:

Standard labor-hours per unit of output	8.4	hours
Standard labor rate	$12.20	per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked	6,200	hours
Actual total labor cost	$73,160
Actual output	950	units

What is the labor efficiency variance for the month?

A. $24,196 F

B. $24,196 U

C. $21,004 F

D. $21,716 F

25. The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output	6.4	hours
Standard variable overhead rate	$12.80	per hour

The following data pertain to operations for the last month:

Actual hours	2,650	hours
Actual total variable manufacturing overhead cost	$34,570
Actual output	150	units

What is the variable overhead efficiency variance for the month?

A. $22,282 U

B. $21,632 U

C. $650 F

D. $12,288 F