1)The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.

Selling price per unit

$ 8.10

Variable manufacturing costs per unit

$ 1.84

Variable selling and administrative expenses per unit

$ 4.55

Fixed manufacturing overhead (in total)

$ 80,000

Fixed selling and administrative expenses (in total)

$ 81,000

Units produced during the year

$550,000

Units sold during the year

$150,000

Using absorption costing, what is the operating income for the last year?(Round any intermediary calculations to the nearest cent)

A) 153,000

B) 1,680,000

C) 1,215,000

D) $750,000

2) During the year, the company produced and sold 40,000 units of product at a selling price of $10.42 per unit. There was no beginning inventory of the product at the beginning of the year.

Fixed costs:

Manufacturing - $115,000

Marketing - $20,000

Administrative - $17,000

Variable costs:

Manufacturing - $115,000

Marketing - $21,000

Administrative $38,000

3) The addition of a specific target operating income to contribution margin analysis has the same effect on required slaes in units as increasing fixed expenses.

True or False