Questions -
Q1. Perona Corporation produces and sells a single product. Data concerning that product appear below:
selling price per unit 160.00
variable expense per unit 70.40
fxed expense per month 385280
The unit sales to attain the company's monthly target profit of $9,000 is closest to:
A 2,464 units
B 4,400 units
C 4,155 units
D 5,601 units
Q2. The following is last month's contribution format income statement:
sales (12000units) 1200000
variable expenses 700000
contribution margin 500000
fixed expenses 300000
net operating income 200000
What is the company's margin of safety percentage to the nearest whole percent?
A 20%
B 40%
C 42%
D 17%