16)

If sales are $811,000, variable costs are 66% of sales, and operating income is $239,000, what is the contribution margin ratio?

a.34%

b.66%

c.38%

d.62%

15)

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

	Overhead		Direct Labor Hours (dlh)			Product
						A		B
Painting Dept.	$258,900		11,800	dlh		2	dlh	10	dlh
Finishing Dept.	84,200		11,700			3		8
Totals	$343,100		23,500	dlh		5	dlh	18	dlh

Using a single plantwide rate, the factory overhead allocated per unit of Product B is

a.$14.60

b.$43.88

c.$73.00

d.$262.80

14)

Zeke Company sells 23,300 units at $15 per unit. Variable costs are $9 per unit, and fixed costs are $34,800. The contribution margin ratio and the unit contribution margin, respectively, are

a.1% and $9 per unit

b.40% and $15 per unit

c.1% and $15 per unit

d.40% and $6 per unit