1.

Which of the following would not be considered a direct cost with respect to the service department of a new car dealership?

	1.	Wages of repair techniques.
	2.	Property taxes paid by the dealership.
	3.	Repair parts consumed.
	4.	Salary of the department manager.

2.

1. The following information is available for Wade Corp.:

   Sales $580,000 Total fixed expenses $150,000

   Cost of goods sold 390,000 Total variable expenses 360,000

   A contribution income statement would report

   	1.	gross profit of $190,000.
   	2.	contribution margin of $430,000.
   	3.	gross profit of $220,000.
   	4.	contribution margin of $220,000.