29. A.

1. A firm operated at 80% of capacity for the past year, during which fixed costs were $203,000, variable costs were 69% of sales, and sales were $1,082,000. Operating profit was

   a. $746,580

   b. $105,936

   c. $335,420

   d. $132,420

28. B.

1. Zeke Company sells 24,700 units at $14 per unit. Variable costs are $7 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin are

   A. 2% and $7 per unit

   B. 50% and $14 per unit

   C. 50% and $7 per unit

2. D.2% and $14 per unit

29. B.

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

   Sales (98 units)		$480,200
   Production costs (122 units):
   Direct materials	$64,622
   Direct labor	16,499
   Variable factory overhead	28,874
   Fixed factory overhead	27,499	137,494
   Operating expenses:
   Variable operating expenses	$5,849
   Fixed operating expenses	4,180	10,029

   What is the amount of the gross profit that would be reported on the absorption costing income statement?

   a. $359,725

   b. $369,754

   c. $363,905

   d. $480,078

29. C.

1. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of businessSeptember, October, and Novemberare $234,000, $320,000, and $426,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

   The cash collections expected in October from accounts receivable are estimated to be

   a. $211,960

   b. $254,352

   c. $146,440

   d. $179,200