Question:

QUESTION 1

Refer to Exercise 3-4 on page 101. Part 1 of 2. Using the data provided, what is Holiday Creations' contribution margin (CM) ratio?

1. A.7%
2. B.33%
3. C.40%
4. D.60%

QUESTION 2

Refer to Exercise 3-4 on page 101. Part 2 of 2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.

1. A.$70
2. B.$330
3. C.$400
4. D.$600

QUESTION 3

Refer to Exercise 3-7 on page 102. Part 1 of 2. Lin Corporation has a target profit of $10,000. Using the data provided regarding selling price, and variable and fixed costs, calculated how many units must be sold to reach their target profit. Post your answer as a whole number without any additional words.

To reach Lin Corporation's target profit of $10,000, it must have sales of [ ] units.

QUESTION 4

Refer to Exercise 3-7 on page 102. Part 2 of 2. Lin Corporation has a target profit of $15,000. Using the data provided regarding selling price, and variable and fixed costs, calculated how many units must be sold to reach their target profit. Post your answer as a whole number without any additional words.

To reach Lin Corporation's target profit of $15,000, it must have sales of [ ] units.

QUESTION 5

Refer to Exercise 3-18 on page 106. Part 1 of 5. What is the monthly break-even point in unit sales and in dollar sales?

1. A.12,000 units, or at $30 per unit, $360,000 in sales
2. B.14,000 units, or at $30 per unit, $420,000 in sales
3. C.16,000 units, or at $30 per unit, $480,000 in sales
4. D.18,000 units, or at $30 per unit, $540,000 in sales