Q 102

Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a contribution margin ratio of 35%.The company's fixed costs are $46,800.If Rothe desires a monthly target operating profit equal to 15% of sales,sales will have to be (rounded):
A)1,486 units.
B)3,467 units.
C)1,040 units.
D)2,600 units.

Q 103

Street Company's fixed costs total $150,000,its variable cost ratio is 60% and its variable costs are $4.50 per unit.Based on this information,the break-even point in units is:
A)50,000.
B)37,500.
C)33,333.
D)100,000.

Q 104

Turner Company's contribution margin ratio is 15%.If the degree of operating leverage is 12 at the $150,000 sales level,operating profit at the $150,000 sales level must equal:
A)$1,500.
B)$2,700.
C)$2,160.
D)$1,875.