1. Robledo Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$100	100%
Variable expenses	20	20%
Contribution margin	$ 80	80%

Fixed expenses are $625,000 per month. The company is currently selling 9,000 units per month. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change?

2.Bendel Inc. has an operating leverage of 7.3. If the company's sales increase by 3%, its net operating income should increase by about:

3. Feery Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$110
Units in beginning inventory	0
Units produced	3,800
Units sold	3,700
Units in ending inventory	100
Variable costs per unit:
Direct materials	$32
Direct labor	$34
Variable manufacturing overhead	$6
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$68,400
Fixed selling and administrative	$14,800

What is the net operating income for the month under absorption costing?

4.Pevy Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:

	Total Company	Southern Division	Northern Division
Sales	$ 332,000	$ 200,000	$ 132,000
Variable expenses	$ 92,400	$ 66,000	$ 26,400
Traceable fixed expenses	$ 170,000	$ 101,000	$ 69,000
Common fixed expenses	$ 36,520	$ 22,000	$ 14,520
	Total Company	Southern Division	Northern Division
Sales	$ 332,000	$ 200,000	$ 132,000
Variable expenses	$ 92,400	$ 66,000	$ 26,400
Traceable fixed expenses	$ 170,000	$ 101,000	$ 69,000
Common fixed expenses	$ 36,520	$ 22,000	$ 14,520

The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division's break-even sales is closest to:

5. Ort Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages$ 360,000Factory equipment depreciation$ 100,000Distribution of Resource Consumption across Activity Cost Pools: Activity Cost PoolsCustomer OrdersProduct ProcessingOtherTotalIndirect factory wages60%30%10%100%Factory equipment depreciation20%60%20%100%The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?

6. Mcallister Corporation has provided the following data concerning its only product:

Selling price per unit	$150
Current sales in units	39,900
Break even sales in units	31,521

The margin of safety as a percentage of sales is closest to:

7. Abdi Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$81
Units in beginning inventory	0
Units produced	7,300
Units sold	7,000
Units in ending inventory	300
Variable costs per unit:
Direct materials	$20
Direct labor	$30
Variable manufacturing overhead	$7
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$65,700
Fixed selling and administrative	$21,000

8. What is the unit product cost for the month under absorption costing?

A company that makes organic fertilizer has supplied the following data:

Bags produced and sold	200,000
Sales revenue	$1,560,000
Variable manufacturing expense	$ 660,000
Fixed manufacturing expense	$ 448,000
Variable selling and administrative expenses	$ 180,000
Fixed selling and administrative expense	$ 214,000
Net operating income	$ 58,000

The company's margin of safety in units is closest to:

9. Paul Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows:

Total Activity

Activity Cost Pool	Total Cost	Product A	Product B	Total
Activity 1	$22,000	400	100	500
Activity 2	$16,240	380	200	580
Activity 3	$14,600	500	250	750

The activity rate under the activity-based costing system for Activity 3 is closest to:

10. Monson Corporation has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the total cost and activity for each of its three activity cost pools:

Activity

Activity Cost Pools	Total Cost	Product G	Product P	Total
Activity1	$ 30,000	200	400	600
Activity 2	$ 24,000	600	900	1,500
Activity 3	$ 80,000	400	3,600	4,000

The annual production and sales of Product G is 10,640 units. The annual production and sales of Product P is 26,600. The cost per unit of Product P under activity-based costing is closest to: