1 . Fomtech, Inc. had net income of $750,000 based on variable costing. Beginning and ending inventories were 50,000 units and 48,000 units, respectively. Assume the fixed overhead per unit was $.75 for both the beginning and ending inventory. What is net income under absorption costing? $751,500 $676,500 $750,000 $823,500 $748,500 2. Swola Company reports the following annual cost data for its single product. This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross margin increase or decrease under variable costing? $112,500 decrease. $187,500 increase. $112,500 increase. There will be no change in gross margin. $187,500 decrease. 3. Gage Company reports the following information for its first year of operations. If the company's cost per unit of finished goods using variable costing is $63, what is total variable overhead? $21,000 $71,500 $77,000 $19,500 $16,590 4.Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At year-end, the company reported the following income statement using absorption costing. Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing. $233,000 $240,500 $311,000 $165,500 $194,100 5 Decko Industries reported the following monthly data. What is the company's contribution margin for this month if 50,000 units were sold? $1,326,000 $1,275,000 $1,716,000 $1,450,000 $1,650,000 6 Assume a company sells a given product for $12 per unit. How many units must be sold to break-even if variable selling costs are $0.50 per unit, variable production costs are $3.50 per unit, and total fixed costs are $4,500,000? 529,412 units. 281,250 units. 375,000 units. 562,500 units. 391,305 units. 7 Given the following data, calculate the total product cost per unit under absorption costing. $4.75 per unit $16 per unit $13.08 per unit $7.05 per unit $15.38 per unit 8 Branwin Corporation sold 7,200 units of its product at a price of $35.60 per unit. Total variable cost per unit is $17.55, consisting of $10.50 in variable production cost and $7.05 in variable selling and administrative cost. Compute contribution margin for the company. $129,960 $50,760 $180,720 $256,320 $126,360 9 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. 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 $22 per unit. Any amount over $43 per unit. Any amount over $13 per unit. Any amount over $17 per unit. Any amount over $21 per unit