Next year, Mudd Face Cosmetics, a single product company, expects to sell 9,000 jars of miracle glaze.

Next year, Mudd Face Cosmetics, a single product company, expects to sell 9,000 jars of miracle glaze. Mudd Face is budgeting the following operating results for next year: Sales.................................$450,00 0

Variable expenses.............. 135,000

Contribution margin.......... 315,000

Fixed expenses................... 252,000

Net operating income......... $ 63,000

118. How many jars of glaze would Mudd Face have to sell next year in order to breakeven? A) 2,700 B) 5,040 C) 6,750 D) 7,200

119. What would Mudd Face's total sales dollars have to be next year in order to increase its projected net operating income by 25%? A) $465,750 B) $472,500 C) $499,500 D) $562,500

120. If sales next year at Mudd Face are 10% higher than expected, its net operating income should be: A) $4,410 higher than expected. B) $6,300 higher than expected. C) $31,500 higher than expected. D) $44,100 higher than expected.

SOLUTION