A product sells for $20 per unit and has a contribution margin ratio of 40%. Fixed expenses total $240,000 annually. How many units of the product must be sold to yield an operating income of $60,000? 37,500 units O 40,000 units 65,000 units O 30,000 units O None of the above A company increased the selling price for its product from $1.00 to $1.10 a unit when total fixed expenses increased from $400,000 to $480,000 and the variable expense per unit remained unchanged at $0.50. How would these changes affect the break-even point? O The break-even point in units would increase. O The break-even point in units would decrease O The break-even point in units would remain unchanged. O The effect cannot be determined from the information given. None of the above A company has provided the following data: * Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, what will the outcome be for operating income? O Decrease by $11,000 O Decrease by $1,000 O Increase by $1,000 O Increase by $11,000 O None of the above A company is planning to sell 200,000 units for $2 a unit and will just break even at this level of sales. The contribution margin ratio is 25%. What are the company's fixed expenses?* O $100,000 O $120,000 O $150,000 O $312,000 O None of the above North Company sells a single product. The product has a selling price of $30 per unit and variable expenses are 70% of sales. If the company's fixed expenses total $60,000 per year, then what will be its break-even?* O $60,000 O $85,714 O $42,000 O $200,000 O None of the above Koby Co. has sales of $200,000 with variable expenses of $150,000, fixed expenses of $60,000, and a net loss of $10,000. How much would Koby have to sell in order to achieve an operating income of 10% of sales? * O $375,000 O $451,000 O $431,000 O $400,000 O None of the above Curtis Company anticipates selling 10,000 units next year. The company wants to earn an operating income equal to 10% of sales. If variable expenses are $12 per unit, and fixed expenses total $78,000 per year, what selling price must be established to achieve the desired level of operating income? O $19.80 per unit O $18.00 per unit $21.78 per unit $22.00 per unit None of the above Which of the following is defined as the amount by which a company's sales can decline before operating losses are incurred? * O Contribution margin O Degree of operating leverage O Margin of safety O Contribution margin ratio O None of the above