36. The cost of freight-in A) is considered a selling expense. B) should not be included in a standard cost system C) is to be included in the standard cost of direct materials. D) should have a separate standard apart from direct materials. 37. Wilton Co. reported the following results from the sale of 5,000 hammers in May sales $200,000, variable costs $120,000, fixed costs $60,000, and net income $20,000. ume that Wilton increases the selling price of hammers by 10% on June 1: How many hammers will have to be sold in June to maintain the same level of net income? A) 4,500 B) 5,000 C) 4,300 D) 4,000 38. Which of the following is not a capital budgeting decision? A) B) C) D) Replacing old equipment Scrapping obsolete inventory Remodeling an office building Constructing new studios 39. Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured? A) $60,000 B) $40,000 C) $10,000 D) $70,000 Use the following to answer question 40: A company's unit costs based on 100,000 units are: Variable costs Fixed costs The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone. $75 30