3. A company distributes a product that sells for 580 per unit. Variable expenses are $40 ner! unit, and fixed expenses total $200,000 annually. Assume that the company sold 10,000 units Last year. The president wants to increase the sales commission by S8 per unit. She thinks that this move, combined with some increase in advertising, would double annual unit les By how much could advertising be increased with profits remaining unchanged? (Choose the closest answer.) A. $240,000 B. $200,000 C. $560,000 D. $280,000 E. $440,000 4. Dobles Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Assembly Processing orders Inspection Estimated Overhead Cost $228,060 $34,068 $125,560 Expected Activity 18,000 machine-hours 1,200 orders 1,720 inspection-hours The company makes 420 units of product D28K a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the unit product cost of product D28K is closest to: A. $95.34 per unit B. $93.60 per unit C. $69.98 per unit D. $91.98 per unit E. $21.02 per unit April 5. A company's total overhead cost at various levels of activity is presented below: Month Machine Hours Total Overhead Cost March 5,000 $21,750 ... 4,000 $19,000 May ...... - 6,000 $25,000 June ..... 7,000 $28,750 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (variable) ............. ...... $ 8,000 Supervisory salaries (fixed) ..... ..... 4,000 Maintenance (mixed) .................... 7,000 Total overhead cost ................... ... $19,000 Suppose the company uses the high-low method to estimate a cost formula for maintenance. What is total maintenance cost the company expects to incur at an activity level of 6,500 machine hours? A. $10,125 B. $14,125 C. $23,125 D. $27,125 E. None of the above 6. Minist Corporation sells a single product for S15 per unit. Last year, the company's sales revenue was $225.000 and its net operating income was $18,000. If fixed expenses totaled $72,000 for the year, the break-even point in unit sales was (choose the closest answer): A. 15,000 B. 9,900 c. 14,400 D. 12,000 E. 18,000