1)

Midway Corporation is planning to sell 400,000 units for $35.00 per unit and will break even at this level of sales. Fixed expenses will be $6,000,000. What are the company's variable expenses per unit?

	A.	$20.00
	B.	$32.00
	C.	$15.00
	D.	$31.00

2)

In multi division companies with large payroll expense but small material expenses (such as legal firms), the best base to allocate common fixed expenses to the divisions is _______.

	A.	headcount (number of employees)
	B.	not applicable
	C.	payroll expense
	D.	revenue