19)

If fixed costs are $274,000, the unit selling price is $124, and the unit variable costs are $79, the break-even sales (units) is

a.3,468 units

b.1,350 units

c.6,089 units

d.2,210 units

18)

Strait Co. manufactures office furniture. During the most productive month of the year, 3,400 desks were manufactured at a total cost of $83,000. In the month of lowest production, the company made 1,140 desks at a cost of $64,400. Using the high-low method of cost estimation, total fixed costs are

a.$55,018

b.$18,600

c.$64,400

d.$83,000

17)

Variable costs as a percentage of sales for Lemon Inc. are 78%, current sales are $577,000, and fixed costs are $180,000. How much will operating income change if sales increase by $49,600?

a.$10,912 increase

b.$38,688 increase

c.$10,912 decrease

d.$38,688 decrease