1.A tile manufacturer has supplied the following data:

Boxes of tiles produced and sold 584,000

Sales revenue $ 3,095,200 Variable manufacturing expense $ 1,781,200

Fixed manufacturing expense $ 788,400

Variable selling and administrative expense $ 175,200

Fixed selling and administrative expense $ 146,000

Net operating income $ 204,400

If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

A.$10,220

B. $261,340

C. $153,325

D. $214,620

2.

Salley Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit				Percent of Sales
Selling price	$	220				100	%
Variable expenses		44				20	%
Contribution margin		176				80	%

Fixed expenses are $1,273,000 per month. The company is currently selling 7,950 units per month. Management is considering using a new component that would increase the unit variable cost by $11. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 540 units. What should be the overall effect on the company's monthly net operating income of this change?

A.decrease of $89,100

B. decrease of $1,650

C. increase of $89,100

D. increase of $1,650

3.

A partial listing of costs incurred during December at Rooks Corporation appears below:

Factory supplies	$	14,000
Administrative wages and salaries	$	111,000
Direct materials	$	159,000
Sales staff salaries	$	74,000
Factory depreciation	$	55,000
Corporate headquarters building rent	$	40,000
Indirect labor	$	38,000
Marketing	$	109,000
Direct labor	$	89,000

The total of the product costs listed above for December is:

A.$340,000

B.$107,000

C.$689,000

D.$355,000