1) If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each), the effect of the unit cost factor on the change in contribution margin is:

A)$7,200 increase

B)$7,200 decrease

C)$6,400 increase

D)$6,400 decrease

2) Which of the following would be included in the cost of a product manufactured according to absorption costing?

A)advertising expense

B)depreciation expense on factory building

C)office supplies costs

D)sales salaries

3)If variable cost of goods sold totaled $80,000 for the year (16,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,250 (15,000 units at $5.75 each), the effect of the unit cost factor on the change in contribution margin is:

A)$12,000 increase

B)$12,000 decrease

C)$5,750 increase

D)$5,750 decrease