- 78 Please 1 (39.19 KiB) Viewed 10 times
78 please
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
78 please
78 please
Use the following to answer questions 75-78: Drake Company's income statement for the most recent year appears below: $650,000 442,000 Sales (26,000 units).. Less: Variable expenses. Contribution margin. Less: Fixed expenses. Net operating loss... 208,000 234,000 $(26,000) 75. The unit contribution margin is: A) $17.00 B) $8.00 C) $1.00 D) $9.00 Answer: B Level: Easy LO: 1 76. The break-even point in sales dollars is: A) $731,250 B) $676,000 C) $675,000 D) $720,000 Answer: A Level: Medium LO: 5 77. If the company desires a net operating income of $20,000, the number of units needed to be sold is: A) 28,500 B) 31,000 C) 31,750 D) 26,500 Answer: C Level: Medium LO: 6 78. The sales manager is convinced that a $60,000 expenditure on advertising will increase unit sales by fifty percent without any other increase in fixed expenses. If the sales manager is correct, the company's net operating income would increase by: A) $44,000 B) $34,000 C) $30,000 D) $49,000 Answer: A Level: Medium LO: 4
Use the following to answer questions 75-78: Drake Company's income statement for the most recent year appears below: $650,000 442,000 Sales (26,000 units).. Less: Variable expenses. Contribution margin. Less: Fixed expenses. Net operating loss... 208,000 234,000 $(26,000) 75. The unit contribution margin is: A) $17.00 B) $8.00 C) $1.00 D) $9.00 Answer: B Level: Easy LO: 1 76. The break-even point in sales dollars is: A) $731,250 B) $676,000 C) $675,000 D) $720,000 Answer: A Level: Medium LO: 5 77. If the company desires a net operating income of $20,000, the number of units needed to be sold is: A) 28,500 B) 31,000 C) 31,750 D) 26,500 Answer: C Level: Medium LO: 6 78. The sales manager is convinced that a $60,000 expenditure on advertising will increase unit sales by fifty percent without any other increase in fixed expenses. If the sales manager is correct, the company's net operating income would increase by: A) $44,000 B) $34,000 C) $30,000 D) $49,000 Answer: A Level: Medium LO: 4