Minist corporation sells a single product for $25 per unit. Last year, the compa
ID: 2501342 • Letter: M
Question
Minist corporation sells a single product for $25 per unit. Last year, the company's sales revenue was $315,000 and its net operating income was $62,250. If fixed expenses totaled $110,000 for the year, the break-even point in unit sales was: Bowe corporation's fixed monthly expenses are $25,000 and its contribution margin ratio is 67%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $82,000? Cabal Products is a division of a major corporation. Last year the division had total sales of $12,880,000, net operating income of $837,200, and average operating assets of $2,833,600. The company's minimum required rate of return is 16%. The division's return on investment (ROl) is closest to:Explanation / Answer
Answer no . 7 (D)
Break even in unit sale = Fixed Cost / Contribution per unit of sale =$110000 / $13.75 = 8000 units
Answer :8 ( C )
Answer no . 9(B)
Return on Investment = Net income / average operating assets * 100
=$837200 / $2833600 * 100
= 29.5
Net Income $63,250 Add: Fixed Cost $110,000 Contribution $173,250 Sales unit 12600 Contribution per unit $13.75