1. Jensen Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per

1.      Jensen Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?

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Select One:

2.      Break-even analysis assumes that (choose one):

3.      If Q equals the level of output, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, then the break-even point in units is (choose one):

4.      All other things the same, which of the following would be true of the contribution margin and variable expenses of a company with high fixed costs and low variable costs as compared to a company with low fixed costs and high variable costs? CHOOSE ONE OPTION:

Franklin Company has a margin of safety percentage of 20% based on its actual sales. The break-even point is $200,000 and the variable expenses are 45% of sales. Given this information, the actual profit is (Choose one):

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6.      A company has provided the following data:

If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net operating income will (choose one):

Sprockets Corporation has provided the following cost data for last year when 100,000 units were produced and sold:

All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. There are no beginning or ending inventories. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be (Choose One):

8.      Valentine Company had the following income statement for the most recent year:

Given this data, the unit contribution margin was (Choose One):

9.      Butaffuco Corporation has provided its contribution format income statement for January. The company produces and sells a single product.

If the company sells 3,100 units, its total contribution margin should be closest to (Choose one):

10.    Greasy Inc. produces and sells a single product. The company has provided its contribution format income statement for May.

If the company sells 4,300 units, its net operating income should be closest to (choose one):

11.    The Simpson Company manufactures and sells a single product which sells for $50 per unit and has a contribution margin ratio of 30%. The company's monthly fixed expenses are $25,000. If Herald desires a monthly target net operating income equal to 20% of sales dollars, sales in units will have to be (rounded) (choose one):

12.    Rexin Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be (choose one):

14.    Union Corporation produces and sells a single product. Data concerning that product appear below:

The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? (choose one):

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15.    Hempsen Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate net operating income of $80,000? (choose one):