1) The contribution margin ratio is 25% for Grain Company and the break-even point in sales is $196,800. To obtain a target net operating income of $78,000, sales would have to be: (Do not round intermediate calculations.) |

| $285,000 | | $508,800 | | $274,800 | | $217,200 |

2) Rothe Company manufactures and sells a single product that it sells for $80 per unit and has a contribution margin ratio of 40%. The company's fixed expenses are $46,400. If Rothe desires a monthly target net operating income equal to 20% of sales, the amount of sales in units will have to be: (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) |

| 1,786 units | | 2,900 units | | 1,340 units | | 3,767 units |

3) Darth Company sells three products. Sales and contribution margin ratios for the three products follow: | Product X | Product Y | Product Z | Sales in dollars | $26,000 | $46,000 | $106,000 | Contribution margin ratio | 51% | 46% | 21% | Given these data, the contribution margin ratio for the company as a whole would be: (Round your intermediate calculations to 2 decimal places. Round your answer to whole percentage.) |

| 32% | | 49% | | 39% | | it is impossible to determine from the data given. |

4) Cindy, Inc. sells a product for $10 per unit. The variable expenses are $5 per unit, and the fixed expenses total $30,100 per period. By how much will net operating income change if sales are expected to increase by $43,000? |

| $21,500 increase | | $40,850 increase | | $8,600 decrease | | $12,900 increase |

5) Pool Company's variable expenses are 27% of sales. Pool is contemplating an advertising campaign that will cost $19,100. If sales increase by $79,100, the company's net operating income should increase by: (Do not round intermediate calculations.) |

| $38,643 | | $71,686 | | $21,357 | | $10,123 |

6) Data concerning Runnells Corporation's single product appear below: |

| Per Unit | Percent of Sales | Selling price | $170 | 100% | Variable expenses | -------------------------------------------------
85 | -------------------------------------------------
50% | Contribution margin | -------------------------------------------------
$ 85 | -------------------------------------------------
50% |

The company is currently selling 5,100 units per month. Fixed expenses are $376,400 per month. The marketing manager believes that a $6,100 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change would be closest to a(an): |

| Increase of $9,200 | | Increase of $15,300 | | Decrease of $9,200 | | Decrease of $6,100 |

7) Last year, Flynn Company reported a profit of $74,000 when sales totaled $524,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,400 next year, what amount of sales will be necessary in order for the company to earn a profit of $84,000? (Do not round intermediate calculations.) |

| $568,700 | | $575,000 | | $608,000 | | $634,600 |

8) The following is last month's contribution format income statement: |

Sales (25,000 units) | $1,700,000 | Variable expenses | -------------------------------------------------
1,275,000 | Contribution margin | 425,000 | Fixed expenses | -------------------------------------------------
220,000 | Net operating income | -------------------------------------------------
$ 205,000 |

What is the company's break-even in sales dollars? (Do not round intermediate calculations.) |

| $880,000 | | $1,700,000 | | $220,000 | | $1,495,000 |