Question - Chung, Inc. sells 100,000 wrenches for $24 per unit. Fixed costs are $700,000 and net income is $500,000. What should be reported as variable expenses in the CVP income statement?
a. $1,080,000
b. $1,200,000
c. $1,900,000
d. $1,700,000
Question - Bolton Industries had actual sales of $1,000,000 when break-even sales were $600,000. What is the margin of safety ratio?
a. 40%
b. 33%
c. 60%
d. 67%