1) Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $5 of variable costs to make. During April, 500 drives were sold. Fixed costs for April were $1500. How much does Crane's operating income increase for each $1000 increase in revenue per month?

Not enough information to determine the answer.

$500

$750

$15000

2) The following monthly data are available for Swifty Corporation. which produces only one product: Selling price per unit, $39; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June?

$1680

$42000

$12480

$84000