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14) Which of the following is NOT a period cost? A) Insuran ce on a company showroom where customers can view new products. B) Cost of a seminar conceming tax law updates that was attended by the company's controller C) Depreciation of factory maintenance equipment D) Salary of a clerk who handles customer billing. 15) For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best be described as a: A) mixed cost. C) fixed cost. B) variable cost. D) step-variable cost. 6)The University Store, Inc. is the major bookseller for four nearby colleges. An incom statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 $ 800,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative Net operating income $ 100,000 110,000 210,000 S 30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. If 25,000 books are sold during the second quarter and this activity is within the relevant range, the company's expected contribution margin would be: A) $875,000 B) S65,000 C) $300,000 D) $175,000