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Multiple choice

At the break-even point:
A)sales would be equal to contribution margin
B)contribution margin would be equal to fixed expenses
C)contribution margin would be equal to net operating income
D)sales would be equal to fixed expenses

Rovinsky Corporation, a company that produced and sells a single product, has provided its contribution format income statement for November:
Sales (5,700 units...............$319,200
Variable expenses................ 188,100
Contribution margin.............. 131,100
Fixed expenses................... 106,500
Net operating income............. 24,600

If the company sells 5,300 units, its NET OPERATING INCOME should be closest to:
A)$24,600
B)$2,200
C)$22,874
D)$15,400

Solution Preview

1. B)contribution margin would be equal to fixed expenses
At ...

Solution Summary

The solution explains two multiple choice questions relating to break-even point and net operating income

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