11. Test Company produced and sold 10,000 units at a price of $20 per unit for the month of July. The total cost of $185,000 included $140,000 of variable costs. All remaining costs are fixed.

Assume Test Company expects the number of units produced and sold to 11,000 units in August.

Determine the expected operating income for August.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

12.

Test Company produced and sold 10,000 units at a price of $20 per unit for the month of July. The total cost of $185,000 included $140,000 of variable costs. All remaining costs are fixed.

If the units produced and sold increases to 11,000 units, the variable cost per unit will

	a.	Increase
	b.	Decrease
	c.	Remain unchanged
	d.	An incorrect answer because Blackboard requires four choices

13.

Test Company produced and sold 10,000 units at a price of $20 per unit for the month of July. The total cost of $185,000 included $140,000 of variable costs. All remaining costs are fixed.

If the units produced and sold increases to 11,000 units, the fixed cost per unit will

	a.	Increase
	b.	Decrease
	c.	Remain unchanged
	d.	An incorrect answer because Blackboard requires four choices