20. Chung, Inc. sells 100,000 wrenches for $24 per unit. Fixed costs are $700,000 and net income is $500,000. What should be reported as variable expenses in the CVP income statement?

a. $1,080,000

b. $1,200,000

c. $1,900,000

d. $1,700,000

21. Bolton Industries had actual sales of $1,000,000 when break-even sales were $600,000. What is the margin of safety ratio?

a. 40%

b. 33%

c. 60%

d. 67%