15. Swola Company reports the following annual cost data for its single product Normal production level75,000 units Direct materials Direct labor Variable overhead $1.25 per unit $2.50 per unit $3.75 per unit 5300,000 in total Fixed overhead This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross margin increase or decrease under variable costing? A. $187,500 increase B. $112,500 increase. C. There will be no change in gross margin. D. $112,500 decrease. E. $187,500 decrease. 16, A company reports the following information for its first year of operations: Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead 650 units 500 units 5750 per unit $1,000 per unit ? in total $308,750 in total If the company's cost per unit of finished goods using variable costing is $2.375, what is total variable overhead? A $237,500 $75,000 C.$312,500 D. $406,250 E. $97,500 Assume that the following information was available for Daylight Enterprises, Inc. Which of the following statements is(are) true with regard to contribution margin ratio? 17. Ceiling Tabletop Stand-Alone Lights Lights Lights Sales Variable expenses $350,000 $175,000 $440,000 Variable production Variable advertising Variable shipping $70,000 $19,250 $90,000 $10,500 $3,500 $22,000 $12,000 $14,000 $28,000 A. B. c, Tabletop lights has the lowest contribution margin ratio Ceiling lights has the highest contribution margin ratio ceiling lights has the lowest contribution margin ratio D. Stand-alone lights has the highest contribution margin ratico E. Tabletop lights has the highest contribution margin ratio