1. According to the Institute of Management Accountants (IMA), the final step in resolving an ethical dilemma is to

A. consult your own attorney as to legal obligations and rights concerning the ethical conflict.

B. clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethical Counselor, an appropriate and confidential ethics hotline, or another impartial advisor.

C. consult with the local police.

D. discuss the situation with an immediate supervisor.

2. Grover Company has the following data for the production and sale of 2,000 units.

Sales price per unit	$800 per unit
Fixed costs:
Marketing and administrative	$400,000 per period
Manufacturing overhead	$200,000 per period
Variable costs:
Marketing and administrative	$50 per unit
Manufacturing overhead	$80 per unit
Direct labor	$100 per unit
Direct Materials	$200 per unit

What is the conversion cost per unit?

A. $100

B. $180

C. $280

D. $380

3. ABC Corporation has provided its contribution format income statement for June. The company produces and sells a single product.

Sales (2,900 units)	$269,700
Variable costs	107,300
Contribution margin	162,400
Fixed costs	137,100
Operating profit	$25,300

If the company sells 3,100 units, its total contribution margin should be closest to:

A. $27,045.

B. $181,000.

C. $162,400.

D. $173,600.

4. Lamar has the following data:

Selling Price	$40
Variable manufacturing cost	$22
Fixed manufacturing cost	$150,000	per month
Variable selling & administrative costs	$6
Fixed selling & administrative costs	$120,000	per month

How many units must Lamar produce and sell in order to break-even?

A. 8,333 units.

B. 12,500 units.

C. 15,000 units.

D. 22,500 units.

5. Goodson Inc. produces and sells a single product. The company has provided its contribution format income statement for March.

Sales (4,500 units)	$427,500
Variable costs	265,500
Contribution margin	162,000
Fixed costs	135,300
Operating profit	$26,700

If the company sells 4,300 units, its operating profit should be closest to:

A. $7,700.

B. $25,513.

C. $26,700.

D. $19,500.