1)

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease	$84,600
Cosmetics Department sales commissions--Northridge Store	$5,740
Corporate legal office salaries	$59,900
Store manager's salary-Northridge Store	$11,700
Heating-Northridge Store	$16,800
Cosmetics Department cost of sales--Northridge Store	$33,300
Central warehouse lease cost	$6,500
Store security-Northridge Store	$15,800
Cosmetics Department manager's salary--Northridge Store	$4,870

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

$39,040

$87,880

$33,300

$43,910

2)

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$160	100%
Variable expenses	80	50%
Contribution margin	$ 80	50%

The company is currently selling 5,800 units per month. Fixed expenses are $407,600 per month. The marketing manager believes that a $6,800 increase in the monthly advertising budget would result in a 110 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Decrease of $6,800

Increase of $8,800

Decrease of $2,000

Increase of $2,000

3)

The contribution margin ratio of Donath Corporation's only product is 70%. The company's monthly fixed expense is $455,500 and the company's monthly target profit is $41,500.

Required:

Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)

4)

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning inventory	0
Units produced	4,100
Units sold	4,000
Units in ending inventory	100

Variable costs per unit:

Direct materials	$	43
Direct labor	$	45
Variable manufacturing overhead	$	8
Variable selling and administrative	$	6

Fixed costs:

Fixed manufacturing overhead	$	86,100
Fixed selling and administrative	$	40,000

What is the variable costing unit product cost for the month?

$102 per unit

$123 per unit

$96 per unit

$115 per unit