1. A company requires 200 pounds of plastic to meet the production needs of a product. It currently has 20 pounds of plastic inventory. The desired ending inventory of plastic is 60 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?

a.

200 pounds

b.

240 pounds

c.

260 pounds

d. 280 pounds

2. The management of Degenhart Corporation, a manufacturing company, has provided the following data for February:

Sales	$480,000
Variable production expense	$71,000
Fixed production expense	$99,000
Variable selling expense	$26,000
Fixed selling expense	$66,000
Variable administrative expense	$60,000
Fixed administrative expense	$124,000

The contribution margin for February was:

	a.	$34,000
	b.	$323,000
	c.	$191,000
	d.	$310,000