1. At its $34 selling price, Pacific Company has sales of $17,000, variable manufacturing costs of $6,000, fixed manufacturing costs of $1,000, variable selling and administrative costs of $2,000 and fixed selling and administrative costs of $1,000. What is the company's contribution margin per unit? 2.Mendicino Company currently produces and sells 47,000 units of product at a selling price of $13. The product has variable costs of $7 per unit and fixed costs of $57,000. The company currently earns a total contribution margin of: 3. During its first year of operations, Beta Company paid $31,750 for direct materials and $18,500 in wages for production workers. Lease payments and utilities on the production facilities amounted to $7,500. General, selling, and administrative expenses were $8,500. The company produced 5,500 units and sold 4,500 units for $15.50 a unit. The average cost to produce one unit is which of the following amounts? 4. The magnitude of operating leverage for Forbes Corporation is 3.5 when sales are $270,000 and net income is $31,000. If sales increase by 5%, what is net income expected to be? 5.The total variable cost increases in direct proportion to volume. T OR F 6. The following income statement is provided for Ramirez Company in 2012: Sales revenue (2,700 units $20.20 per unit) $54,540 Cost of goods sold (variable; 2,700 units $8.20 per unit) (22,140) Cost of goods sold (fixed) (4,200) Gross margin 28,200 Administrative salaries (6,200) Depreciation (4,200) Supplies (2,700 units $2.20 per unit) (5,940) Net income $11,860 What amount was the company's contribution margin? 7.Zero, Inc. produces a product that has a variable cost of $7.00 per unit. The company's fixed costs are $42,000. The product sells for $12.00 a unit and the company desires to earn a $21,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.) 8. A product has a contribution margin of $8 per unit and a selling price of $30 per unit. Fixed costs are $23,000. Assuming new technology increases the unit contribution margin by 70 percent but increases total fixed costs by $19,160, what is the new breakeven point in units? 9. The following information relates to Mystic Manufacturing's 2013 accounting period: Raw materials used $17,200 Direct labor wages 33,200 Sales salaries and commissions 25,200 Depreciation on production equipment 3,020 Rent on manufacturing facilities 4,020 Administrative supplies and utilities 5,200 Sales revenue 107,000 Units produced 4,200 Units of sold 4,200 Based on this information, what is the company's net income for 2013? 10. Yankee Tours provide seven-day guided tours along the New England coast. The company pays its guides a total of $220,000 per year. The average cost of supplies, lodging and food per customer is $550. The company expects a total of 1,000 customers during the period January - June, and a total of 3,000 customers from July through December. Yankee wants to earn $250 income per customer. For promotional reasons the company desires to charge the same price throughout the year. Based on this information, what is the correct price per customer? (round to nearest dollar) 11. Kratzen Company sells a product at $80 per unit that has unit variable costs of $30. The company's break-even sales volume is $160,000. How much profit will the company make if it sells 3,000 units? 12.Mug Shots operates a chain of coffee shops. The company pays rent of $15,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The cost of rent relative to the number of customers in a particular shop and relative to the number of customers in the entire chain of shops is which kind of cost, respectively? 13. A review of the accounting records of Spiller Manufacturing indicated that the company incurred the following payroll costs during the month of September. 1. Salary of the company president$31,000. 2. Salary of the vice president of manufacturing$16,800. 3. Salary of the chief financial officer$18,300. 4. Salary of the vice president of marketing$15,200. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant$206,000. 6. Wages of production workers$931,000. 7. Salaries of administrative secretaries$104,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment$183,000. 9. Commissions paid to sales staff$248,000. Required: a. What amount of payroll cost would be classified as selling, general, and administrative expense? b. Assuming that Spiller made 3,600 units of product and sold 2,880 of them during the month of September, determine the amount of payroll cost that would be included in cost of goods sold