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18.Pool Company's variable expenses are 36% of sales. Pool is contemplating an advertising campaign that will cost $20,000. If sales increase by $80,000, the company's net operating income should increase by:

a. [pic]a.

$28,800.

b. [pic]b.

$64,000.

c. [pic]c.

$ 8,800.

d. [pic]d.

$31,200.

19.Street Company's fixed expenses total $150,000, its variable expense ratio is 60% and its variable expenses are $4.50 per unit. Based on this information, the break-even point in units is:

a. [pic]a.

50,000.

b. [pic]b.

37,500.

c. [pic]c.

33,333.

d. [pic]d.

100,000.

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 expenses are $46,800. If Rothe desires a monthly target net operating income equal to 15% of sales, sales will have to be (rounded):

a. [pic]a.

1,486 units.

b. [pic]b.

3,467 units.

c. [pic]c.

1,040 units.

d. [pic]d.

2,600 units.

If sales volume increases and all other factors remain constant, then the:

a. [pic]a.

contribution margin ratio will increase.

b. [pic]b.

break-even point will decrease.

c. [pic]c.

margin of safety will increase.

d. [pic]d.

net operating income will decrease.

Rider Company sells a single product. The product has a selling price of $40 per unit and variable expenses of $15 per unit. The company's fixed expenses total $30,000 per year. The company's break-even point in terms of total dollar sales is:

a. [pic]a.

$100,000.

b. [pic]b.

$80,000.

c. [pic]c.

$60,000.

d. [pic]d.

$48,000.

Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what will sales have to be for the company to earn a profit of...