21.
If 24,000 hats were sold, Grant’s
operating income would be:
A.
$100,800.
B.
$115,200.
C.
$93,600.
D.
$108,000.
E.
$122,400.

Stylish
Sitting is a retailer of office chairs located in San Francisco, California.
Due to increased market competition, the CFO of Stylish Sitting has grown
worried about the firm’s upcoming income stream. The CFO asked you to use the
company financial information provided below.
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22.
The annual breakeven point, in unit
sales, is:
A.
15,000 units.

B.
24,000 units.
C.
36,000 units.
D.
13,000 units.
E.
19,000 units.

23.
The annual breakeven point in dollar
sales is calculated to be:
A.
$1,300,000.
B.
$1,500,000.
C.
$1,100,000.
D.
$1,600,000.
E.
$1,800,000.

24.
If 40,000 office chairs were sold,
Stylish Sitting’s operating income would be:
A.
$240,000.

B.
$280,000.
C.
$210,000.
D.
$340,000.
E.
$120,000.

Premium
Beds is a retailer of luxury bed frames located in Los Angeles, California. Due
to a recent industry-wide financial crisis, the CFO of Premium Beds fears a
significant drop in the firm’s upcoming income stream. The CFO asked you to use
the company financial information provided below.
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25.
The annual breakeven point in unit sales
is calculated to be:
A.
1,600 units.
B.
2,000 units.
C.
3,400 units.
D.
1,300 units.
E.
2,600 units.

26.
The annual breakeven point, in dollar
sales, is calculated to be:
A.
$4,800,000.

B.
$4,500,000.
C.
$4,100,000.
D.
$4,600,000.
E.
$4,300,000.

27.
If 4,000 bed frames were sold, Premium
Bed’s operating income would be:
A.
$1,240,000.

B.
$1,280,000.
C.
$1,200,000.
D.
$1,340,000.
E.
$1,120,000.

During
the current year, OutlyTech Corp. expected to sell 24,000 telephone switches.
Fixed costs for the year were expected to be $12,144,000, the unit sales price
was budgeted at $3,200, and unit variable costs were budgeted at $1,440.

28.
OutlyTech’s margin of safety (MOS) in
units is (rounded up to nearest whole number):
A.
18,270.

B.
17,100.
C.
20,880.
D.
16,970.
E.
22,190.

29.
OutlyTech’s margin of safety (MOS) in
sales dollars is:
A.
$76,577,000.

B.
$87,517,000.
C.
$82,044,000.
D.
$54,720,000.
E.
$66,900,000.

30.
OutlyTech’s margin of safety ratio
(MOS%) is:
A.
71.25%.

B.
87.00%.
C.
70.25%.
D.
92.50%.
E.
76.15%.

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