1) During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$1,900,000.

$2,800,000.

$1,300,000.

$1,100,000.

$1,700,000.

2) Multiple cost pools are used when allocating overhead using the plantwide overhead rate method.

True

False

3) A company is currently operating at 75% capacity and producing 3,000 units. Current cost information relating to this production is shown in the table below:

	Per Unit
Sales price	$43
Direct material	$7
Direct labor	$6
Variable overhead	$4
Fixed overhead	$4

The company has been approached by a customer with a request for a 200-unit special. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

Any amount over $43 per unit.

Any amount over $17 per unit.

Any amount over $21 per unit.

Any amount over $13 per unit.

Any amount over $22 per unit.