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Mitchell Corporation manufactures a to $68 per unit. The fixed costs are $16,500 per month. single product. The selling price is S85 per unit, and variable costs amount 31) Refer to the information above. What is the contribution margin ratio of Mitchell's product? A) 80%. B) 72%. c) 20%. D) 65%. 32) Millar Company produces a single product which it sells for $89 a unit. If the fixed costs of nit. manufacturing and selling the product are $68,400 a month and the variable costs are $57 a which of the below is correct? A) The contribution margin per unit of product is $32 B) The fixe d costs amount to $32 per unit at any level of output within a relevant volume range. C) T D) he company will break even with a sales volume of $68,400 a month. An increase in sales volume above $68.400 a month will cause an increase in fixed costs. 33) One advantage of issuing bonds instead of stock is that: A) The issuance of bonds does not affect earnings per share. B) Interest is tax deductible, whereas dividends are not. C) Interest rates are lower than dividend rates. D) Bonds have a longer maturity date. 34) Sinking funds usually appear on the balance sheet as: A) Long-term investment. C) Current asset. B) Appropriation of retained earnings D) Current liability. 35) Bonds which may be exchanged for a specified number of shares of capital stock are called: A) Debenture bonds. C) Convertible bonds. B) Junk bonds. D) Mortgage bonds. 36) When a corporation has a right to redeem bonds in advance of the maturity date, the bond is considered a: A) Convertible bond. C) Debenture bond. B) Callable bond. D) Junk bond. on April 30, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each June 30 and December 31. Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1The bonds are issued 37) Refer to the information above. The total amount of cash received by Austin Corporation upon issuance of the bonds on April 30, Year 2, is: B) S6,300,000 C) $6,150,000 D) $6,000,000. A) $6,200,000 35) Refer to the information above. The amount of Austin's interest expense on this bond issue during Year 2 amounts to: A) $450,000 B) S600,000. C) $400,000. D) $360,000. A-6