1. Factory property taxes are a 2. Factory Janitors wages are a: 3. CEO's salary is a: 4. Steel used to build jet boats is a: 5. Sales personnel commissions are a: 6. Wages earned by individuals working on the assembly line is a: 7. Factory equipment mechanic wages are a:

A. product cost and direct material cost B. product cost and direct labor cost C. product cost and factory overhead cost D. period cost and selling expense E. period cost and administrative expense

8. You have been provided with the following information Sales $90,000 Less Variable Exp (54,000) Contribution margin 36,000 Less Fixed Exp (24,000) Operating Profit $12,000 If sales decrease by 10%, what level of fixed expenses will maintain the current operating profit?

A. 12,000 B. 20,400 C. 21,600 D. 24,000