25. A.

1. If fixed costs are $256,000, the unit selling price is $34, and the unit variable costs are $18, what is the break-even sales (units) if fixed costs are reduced by $33,600?

   a. 13,900 units

   b. 20,850 units

   c. 16,680 units

   d. 11,120 units

25. B

1. If sales totaled $665,288 for the year (83,161 units at $8 each) and the planned sales totaled $848,276 (77,116 units at $11 each), the effect of the quantity factor on the change in sales is:

   a. $66,495 increase

   b. $182,988 decrease

   c. $66,495 decrease

   d. $182,988 increase

25. C.

1. A business operated at 100% of capacity during its first month, with the following results:

   Sales (97 units)		$388,000
   Production costs (121 units):
   Direct materials	$52,320
   Direct labor	13,358
   Variable factory overhead	23,377
   Fixed factory overhead	22,265	111,320
   Operating expenses:
   Variable operating expenses	$5,349
   Fixed operating expenses	3,810	9,159

   What is the amount of the income from operations that would be reported on the absorption costing income statement?

   a. $307,450

   b. $387,879

   c. $289,600

   d. $311,260