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# BA213_Answer.key.Review.Test2.pdf - page 3 / 22

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4. Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.

# If the company sells 4,600 units, its total contribution margin should be closest to:

• a.

\$54,600

• B.

\$59,800

• c.

\$69,400

• d.

\$13,362

Current contribution margin

# Current sales in units = Contribution margin per unit

\$54,600

4,200 = \$13 contribution margin per unit

If 4,600 units are sold, the total contribution margin will be 4,600 × \$13, or \$59,800.

5. Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.

# If the company sells 9,200 units, its net operating income should be closest to:

• a.

\$27,077

• b.

\$49,900

• C.

\$36,700

• d.

\$25,900

Current sales dollars

# Current sales in units = Sales price per unit

\$528,000

8,800 = \$60 sales price per unit

# Current sales in units = Variable expense per unit

\$290,400

8,800 = \$33 variable expense per unit

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