47. A.

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

   Sales (96 units)		$480,000
   Production costs (120 units):
   Direct materials	$60,000
   Direct labor	15,000
   Variable factory overhead	27,000
   Fixed factory overhead	24,000	126,000
   Operating expenses:
   Variable operating expenses	$6,210
   Fixed operating expenses	3,640	9,850

   What is the amount of the income from operations that would be reported on the variable costing income statement?

   a. $470,150

   b. $364,550

   c. $479,880

   d. $392,190

47. B.

1. Variable costs as a percentage of sales for Lemon Inc. are 66%, current sales are $504,000, and fixed costs are $177,000. How much will operating income change if sales increase by $44,600?

   a. $15,164 decrease

   b. $29,436 increase

   c. $15,164 increase

   d. $29,436 decrease

47. C.

1. If fixed costs are $811,000 and variable costs are 64% of sales, what is the break-even point in sales dollars?

   a. $1,330,040

   b. $519,040

   c. $2,252,778

   d. $3,063,778

47. D.

1. If the expected sales volume for the current period is 7,200 units, the desired ending inventory is 228 units, and the beginning inventory is 331 units, the number of units set forth in the production budget, representing total production for the current period, is

   a. 7,097

   b. 7,428

   c. 6,869

   d. 7,200