32. A.

1. If fixed costs are $1,323,000, the unit selling price is $233, and the unit variable costs are $104, what is the amount of sales required to realize an operating income of $205,000?

   a. 11,845 units

   b. 5,678 units

   c. 1,971 units

   d. 12,721 units

32. B.

1. Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent.

   	Cost	Machine Hours
   March	$3,123	15,350
   April	2,673	9,900
   May	2,870	12,009
   June	3,625	17,781

   a. $0.68

   b. $0.12

   c. $0.72

   d. $1.45

32. C.

1. The level of inventory of a manufactured product has increased by 9,044 units during a period. The following data are also available:

   	Variable	Fixed
   Unit manufacturing costs of the period	$12	$6
   Unit operating expenses of the period	$4	$4

   What would be the effect on income from operations if absorption costing is used rather than variable costing?

   a. $90,440 decrease

   b. $54,264 decrease

   c. $54,264 increase

   d. $90,440 increase