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1. Product L40O Product Y27L Sales $23,200 $50,200 Variable expenses 9,280 18,89

ID: 2357430 • Letter: 1

Question

1. Product L40O Product Y27L Sales $23,200 $50,200 Variable expenses 9,280 18,890 Contribution margin $13,920 $31,310 If the sales mix were to shift toward Product L40O with total dollar sales remaining constant, the overall break-even point for the entire company: could increase or decrease. would increase. would not change. would decrease. 2. Sproles Inc. manufactures a variety of products. Variable costing net operating income was $90,500 last year and its inventory decreased by 3,500 units. Fixed manufacturing overhead cost was $6 per unit. What was the absorption costing net operating income last year? $90,500 $21,000 $69,500 $111,500 3. Carr Company produces a single product. During the past year, Carr manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows: Fixed manufacturing overhead $395,460 Variable manufacturing overhead $258,570 Direct labor $142,974 Direct materials $234,234 Sales totaled $1,207,650, variable selling expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There were no units in beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit would be: (Do not round intermediate calculations.) $27.60 $22.10 $17.60 $23.20

Explanation / Answer

$22.10