# 46 the contribution margin ratio is a 64 3 percent b 55 6 percent c 35 7 percent d 4 4309857

46) The contribution-margin ratio is

A) 64.3 percent.

B) 55.6 percent.

C) 35.7 percent.

D) 44.4 percent.

47) If total fixed costs increased to \$156,750, then break-even volume in dollars would increase by

A) 12.3 percent.

B) 20.0 percent.

C) 34.3 percent.

D) 10.0 percent.

Assume the following cost information for Quayle Corporation:

 Total fixed costs \$50,000 Selling price per unit \$90 Variable costs per unit \$50 Tax rate 40 percent

48) What volume of sales dollars is required to earn an after-tax net income of \$15,000?

A) \$196,875

B) \$157,500

C) \$135,000

D) \$168,750

49) What is the number of units that must be sold to earn an after-tax net income of \$25,500?

A) 3,700

B) 2,313

C) 1,594

D) 1,063

50) What is the break-even point in units?

A) 1,000

B) 1,250

C) 556

D) 500

51) If fixed costs increased by 10 percent, and management wanted to maintain the original break-even point, then the selling price per unit would have to be increased to

A) \$99

B) \$130

C) \$94

D) \$97

52) The change in total results under a new condition, in comparison with some given or known condition, is the definition of

A) incremental.

B) detrimental.

C) conditional.

D) comparability.

53) Given a break-even point of 44,000 units and a contribution margin per unit of \$4.80, the total number of units that must be sold to reach a net profit of \$9,048 is

A) 45,885 units.

B) 44,000 units.

C) 1,885 units.

D) cannot be determined with the above information.

54) As sales exceed the break-even point, a high contribution-margin percentage

A) decreases profits faster than does a small contribution-margin percentage.

B) decreases profits at the same rate as a small contribution-margin percentage.

C) increases profits at the same rate as a small contribution-margin percentage.

D) increases profits faster than does a small contribution-margin percentage.

55) Operating leverage is

A) the ratio of net income to sales.

B) the ability of a firm to pay off its debts.

C) the ratio of fixed costs to variable costs.

D

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