1. Helpful Hardware sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $400 and of each door is $1,000. The variable cost of each window is $250 and of each door is $700. Fixed costs are $1,440,000. The break-even point in units using the weighted-average contribution margin is:

Multiple Choice 3,200 units. 8,000 units. 12,000 units. 6,858 units. 5,334 units.

2. A manufacturer reports the following information below for its first three years in operation.

	Year 1	Year 2	Year 3
Variable costing income	$ 94,000	$ 127,000	$ 133,000
Beginning finished goods inventory (units)	0	980	590
Ending finished goods inventory (units)	980	590	0
Fixed overhead per unit	$ 11.00	$ 11.00	$ 11.00

Income for year 1 using absorption costing is:

Multiple Choice

$94,000.

$104,780.

$115,560.

$122,710.

$126,510.