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##### This past year Castle Rook Industries sold 2,000 of its designer-chrome chess sets. The company reported total sales of $400,000...

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**Question**

This past year Castle Rook Industries sold 2,000 of its designer-chrome chess sets. The company reported total sales of $400,000 and variable product costs of $180,000. The company also reported variable selling expenses of $40,000 and fixed expenses of $125,000.;1) What is the variable expense ratio?;2) What is break-even point in unit sales?;3) What is the contribution margin ratio?;4) What is the break-even point in dollars?;5) What is the total contribution margin?;6) How many units must be sold to achieve a target profit of $75,000?;7) If the variable costs increase and the fixed expenses decrease, will the contribution margin increase or decrease?;8) If the company sells 2,001 units, what would be the increase in net operating profit?;9) If sales decrease to 1,500 units, what would the net profit be?;10) If variable costs increased by $10 per unit, spending on advertising increased by $30,000 and sales increased by 300 units, what would be the net profit?

Paper#76400 | Written in 18-Jul-2015

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