Martin Enterprises provides the following information about its single product Targeted operating income $50,830 Selling price per unit $6

1. Martin Enterprises provides the following information about its single product
   
   Targeted operating income $50,830
   Selling price per unit
   $6.55
   Variable cost per unit $4.25
   Total fixed cost $94,070
   
   How many units must be sold to earn the targeted operating income?
   (a) 63,000
   (b) 13,417
   (c) 40,900
   (d) 22.100

(a) 63,000

2. The difference between sales dollars and total costs after breakeven point on a CVP graph is the representation of
   (a) operating loss
   (b) slope of fixed costs per unit
   (c) slope of fixed costs per unit
   (d) operating income

(d) operating income

3. THe contribution margin ratio explains the percentage of each sales dollar that
   (a) contributes towards sales revenue
   (b) contributes towards variable costs
   (c) contributes towards period expenses
   (d) contributes towards fixed costs and generating a profit

(d) contributes towards fixed costs and generating a profit

4. Mom and Pop's Ice Cream Shoppe sells ice cream cones for $5 per customer. Variable costs are $2.25 per cone. Fixed costs are $3,000 per month. what is the company's contribution margin per ice cream cone?
   (a) $2.65
   (b) $2.25
   (c) $1.82
   (d) $0.55

(a) $2.75

5. Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $3.75, variable costs are $1.25 per dozen, and total fixed costs are $750.00. What are breakeven sales in dollars?
   (a) $375
   (b) $1,125
   (c) $300
   (d) $563

(b) $1,125

6. Moe's Pizza Shop sells a large pizza for $11.50. Unit variable expenses total $5.50. The breakeven sales in units is 5,000 and budgeted sales in units is 9,500. What is the margin of safety in dollars?
   (a) $166,750
   (b) $391
   (c) $4,500
   (d) $51,750

(d) $51,750

7. To find the sales revenue (sales in dollars) needed in order to breakeven or generate a target profit, the formula use is
   (a) (fixed expenses - operating income) / contribution margin ratio
   (b) (fixed expenses + operating income) / contribution margin per unit
   (c) (fixed expenses - operating income) / contribution margin per unit
   (d) (fixed expenses + operating income) / contribution margin ratio

(d) (fixed expenses + operating income) / contribution margin ratio