1. Condit Corporation manufactures a variety of products. Variable costing net operating income was $75,600 last year and was $80,100 this year. Last year, inventory decreased by 3,400 units. This year, inventory increased by 3,000 units. Fixed manufacturing overhead cost is $5 per unit. What was the absorption costing net operating income this year?

	$78,100
	$95,100
	$65,100
	$73,600

2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$225
Units in beginning inventory	0
Units produced	4,600
Units sold	2,500
Units in ending inventory	2,100
Variable costs per unit:
Direct materials	$29.25
Direct labor	$45.25
Variable manufacturing overhead	$10.25
Variable selling and administrative	$10.25
Fixed costs:
Fixed manufacturing overhead	$126,000
Fixed selling and administrative	$80,000

What is the net operating income (loss) for the month under variable costing?

	$144,000
	$119,000
	$(80,500)
	$25,000

3.

9.

value: 10.00 points

The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,400,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totaled $370,000. Sales were: Product A, $660,000; Product B, $380,000; and Product C, $360,000. Traceable fixed costs were: Product A, $136,000; Product B, $132,000; and Product C, $69,600. The variable expenses of Product A were $380,000 and the variable expenses of Product B were $208,800.

The contribution margin ratio for Product C is: (Round your final percentage to one decimal place.)

	19.3%
	18.6%
	81.4%
	25.7%