51. Maxine’s budget for the upcoming year revealed the following figures: .0/msohtmlclip1/01/clip_image002.png”> If the company’s break-even sales total $750 000 Maxine’s safety margin would be: A. $(90 000). B. $90 000. C. $246 000. D. $336 000. E. $696 000. 52. Brooklyn sells a single product to wholesalers. The company’s budget for the upcoming year revealed anticipated unit sales of 31 600 a selling price of $20 variable cost per unit of $8 and total fixed costs of $360 000. Brooklyn’s safety margin in units is: A. (13 400). B. 0. C. 1 600. D. 13 600. E. an amount other than those above. 53. Brooklyn sells a single product to wholesalers. The company’s budget for the upcoming year revealed anticipated unit sales of 31 600 a selling price of $20 variable cost per unit of $8 and total fixed costs of $360 000. If Brooklyn’s unit sales are 200 units less than anticipated its breakeven point will: A. increase by $12 per unit sold. B. decrease by $12 per unit sold. C. increase by $8 per unit sold. D. decrease by $8 per unit sold. E. not change. 54. Brooklyn sells a single product to wholesalers. The company’s budget for the upcoming year revealed anticipated unit sales of 31 600 a selling price of $20 variable cost per unit of $8 and total fixed costs of $360 000. If Brooklyn’s unit sales are 300 units more than anticipated its break-even point will: A. increase by $12 per unit sold. B. decrease by $12 per unit sold. C. increase by $8 per unit sold. D. decrease by $8 per unit sold. E. not change. 55. If a company desires to increase its safety margin it should: A. increase fixed costs. B. decrease the contribution margin. C. decrease selling prices assuming the price change will have no effect on demand. D. stimulate sales volume. E. attempt to raise the break-even point. 56. Danielle sells a single product at $20 per unit. The firm’s most recent income statement revealed unit sales of 100 000 variable costs of $800 000 and fixed costs of $400 000. If a $4 drop in selling price will boost unit sales volume by 20% the company will experience: A. no change in profit because a 20% drop in sales price is balanced by a 20% increase in volume. B. an $80 000 drop in profit. C. a $240 000 drop in profit. D. a $400 000 drop in profit. E. a change in profit other than those above. 57. Grime-X is studying the profitability of a change in operation and has gathered the following information: .0/msohtmlclip1/01/clip_image004.png”> Should Grime-X make the change? A. Yes the company will be better off by $6 000. B. No because sales will drop by 3 000 units. C. No because the company will be worse off by $4 000. D. No because the company will be worse off by $22 000. E. It is impossible to judge because additional information is needed. 58. Cleason sells a single product at $14 per unit. The firm’s most recent income statement revealed unit sales of 80 000 variable costs of $800 000 and fixed costs of $560 000. Management believes that a $3 drop in selling price will boost unit sales volume by 20%. Which of the following correctly depicts how these two changes will affect the company’s break-even point? .0/msohtmlclip1/01/clip_image006.png”> A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E 59. All other things being equal a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest: A. selling price. B. variable cost. C. contribution margin. D. fixed cost. E. gross margin. 60. O’Dale sells three products: R S and T. Budgeted information for the upcoming accounting period follows. .0/msohtmlclip1/01/clip_image008.png”> The company’s weighted-average unit contribution margin is: A. $3.00. B. $3.55. C. $4.00. D. $19.35. E. an amount other than those above.
