1.A. If sales are $812,000, variable costs are 79% of sales, and operating income is $267,000, what is the contribution margin ratio?

Answer=

1. B. If sales totaled $231,374 for the current year (10,517 units at $22 each) and planned sales totaled $175,980 (12,570 units at $14 each), the effect of the unit price factor on the change in sales is a:

1. C.

1. Miller and Sons' static budget for 9,800 units of production includes $39,700 for direct materials, $54,900 for direct labor, variable utilities of $7,000, and supervisor salaries of $16,200. A flexible budget for 12,200 units of production would show

   Round your final answer to the nearest dollar. Do not round interim calculations.

   a. the same cost structure in total

   b. direct materials of $49,422, direct labor of $68,345, utilities of $8,714, and supervisor salaries of $16,200

   c. direct materials of $49,422, direct labor of $68,345, utilities of $8,714, and supervisor salaries of $19,440

   d. total variable costs of $117,800