Question

Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units.

What is the margin of safety in dollars?

Multiple Choice

• $3,736,965

• $5,988,500

• $4,730,625

• $1,257,875

Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below:

	Product I49V			Product Z50U
Sales	$	32,000		$	37,000
Variable expenses	$	12,000		$	27,330

The fixed expenses of the entire company were $39,140. The break-even point for the entire company is closest to:

Multiple Choice

• $78,470

• $91,023

• $39,140

• $46,260

A cement manufacturer has supplied the following data:

Tons of cement produced and sold		275,000
Sales revenue	$	979,000
Variable manufacturing expense	$	232,000
Fixed manufacturing expense	$	313,000
Variable selling and administrative expense	$	110,650
Fixed selling and administrative expense	$	93,000
Net operating income	$	230,350

The company's contribution margin ratio is closest to:

Multiple Choice

• 44.3%

• 65.0%

• 68.0%

• 23.5%

Mullee Corporation produces a single product and has the following cost structure:

Number of units produced each year		7,000
Variable costs per unit:
Direct materials	$	51
Direct labor	$	12
Variable manufacturing overhead	$	2
Variable selling and administrative expense	$	5
Fixed costs per year:
Fixed manufacturing overhead	$	441,000
Fixed selling and administrative expense	$	112,000

The absorption costing unit product cost is:

Multiple Choice

• $149 per unit

• $65 per unit

• $63 per unit

• $128 per unit

Answer 1