1. Which one of the following is not an assumption of CVP analysis? All units produced are sold. All costs are variable costs. Sales mix remains constant. The behavior of costs and revenues are linear within the relevant range. Kuzio Corporation produces and sells single product. Data concerning that product appear below: Percent of Sales Selling price Variable expenses Contribution margin Per Unit $130 78 $ 52 100% 60% 2. 408 The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? The Tobler Corporation has budgeted production for next year as follows: Quarter Second Third 16,000 First 10,000 Production in units Fourth 14,000 12,000 3. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.61 direct labor-hours. The direct labor rate is $8.10 per direct labor-hour. The production budget calls for producing 6,100 units in May and 6,500 units in June. If the direct labor work 4. force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Round your intermediate calculations to 2 decimal places.)