BUS 252Accounting Test Bank 07

74. Sanes Corporation produces and sells a single product. Data concerning that product appear below: The unit sales to attain the company's monthly target profit of $19,000 is closest to: A. 3,42 6 B. 5,83 3 C. 3,80 6 D. 2,15 8 75. A product sells for $10 per unit and has variable expenses of $6 per unit. Fixed expenses total $45,000 per month. How many units of the product must be sold each month to yield a monthly profit of $15,000? A. 6,000 units B. 3,750 units C. 15,000 units D. 10,000 units 76. Palomo Corporation sells a product for $170 per unit. The product's current sales are 35,200 units and its break-even sales are 25,344 units. The margin of safety as a percentage of sales is closest to: A. 72 % B. 39 % C. 28 % D. 61 % 77. Malley Corporation has provided the following data concerning its only product: What is the margin of safety in dollars? A. $1,390,0 00 B. $562,95 0 C. $2,085,0 00 D. $1,522,0 50 78. Renfrew Corporation has provided the following data concerning its only product: The margin of safety as a percentage of sales is closest to: A. 29 % B. 59 % C. 71 % D. 41 % 79. Morganti Corporation sells a product for $140 per unit. The product's current sales are 40,700 units and its break-even sales are 31,339 units. What is the margin of safety in dollars? A. $3,798,6 67 B. $5,698,0 00 C. $4,387,4 60 D. $1,310,5 40 80. Sales in North Corporation increased from $60,000 per year to $63,000 per year while net operating income increased from $10,000 to $12,000. Given this data, the company's degree of operating leverage must have been: A. 4. 0 B. 1. 5 C. 5. 0 D. 21. 0 81. Alpha Corporation reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is: A. 1 0 B. 2 C. 4 D. 2. 5 82. Tribley Inc. has an operating leverage of 8.0. If the company's sales increase by 19%, its net operating income should increase by about: A. 152.0 % B. 19.0 % C. 8.0 % D. 42.1 % 83. Cleckley Corporation's operating leverage is 5.9. If the company's sales increase by 19%, its net op