1. Fixed costs to manufacture custom jeans from Levis are $36. If the total cost to make 4 pairs of jeans is $45, what is the marginal cost of a 5th pair of jeans?

a. $3.00

b. $8.00

c. $4.00

d. $2.25

2. Which of the following is not both a product cost and a variable cost?

a. Base pay for a factory line workers overtime

b. Shoelaces used in the manufacturing of tennis shoes

c. Salary of assembly-line workers at a BMW plant

d. Ink used in a Born on MM/DD/YYYY stamp at a bottling facility

3. Harley Davidson began February with finished-goods inventory of $2,400,000. The finished-goods inventory at the end of February was $3,100,000 and the cost of goods sold during the month was $12,300,000. The cost of goods manufactured during July was? a. $13,000,000

b. $11,000,000

c. $ 9,000,000

d. $ 6,800,000

e. Some other amount

4. Oakley manufactures sunglasses and reported sales revenues of $210,000 and total costs of $56,000 this year. Oakley incurs variable cost that is 10% of sales. What would the total costs be if sales were $168,000? a. $16,800

b. $32,000

c. $41,400

d. $51,800

e. Some other amount