22.

Witczak Company has a single product and currently has a degree of operating leverage of 5. Which of the following will increase Witczak's degree of operating leverage?

An increase in An increase in

variable expenses fixed expenses

(A) Yes Yes

(B) No Yes

(C) Yes No

(D) No No

Select one:

a. Choice A

b. Choice C

c. Choice B

d. Choice D

23.

Dabbs Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume ................................... 4,000 units 5,000 units

Direct materials ........................................ $258,400 $323,000

Direct Labor ............................................... $86,800 $108,500

Manufacturing overhead ................... $341,200 $358,000

The best estimate of the total monthly fixed manufacturing cost is:

Select one:

a. $789,500

b. $686,400

c. $274,000

d. $737,950