1.

The following information is available for a company's cost of sales over the last five months.

Month	Units sold	Cost of sales
January	350	$29,000
February	750	$34,500
March	1,350	$46,500
April	2,150	$58,500

Using the high-low method, the estimated variable cost of sales per unit sold is:

A.$27.21. B.$82.86. C.$35.00. D.$16.39. E.$34.44.

2. Gladstone Co. has expected sales of $360,000 for the upcoming month and its monthly break even sales are $342,500. What is the margin of safety as a percent of sales, round your percentage answer to two decimal places?

A.5.11%. B.105.1%. C.195.14%. D.4.86%. E.95.14%.

3. Management anticipates fixed costs of $72,900 and variable costs equal to 48% of sales. What will pretax income equal if sales are $350,000?

A.$212,550. B.$277,100. C.$95,100. D.$168,000. E.$109,100.