49) Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it 49 produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $ 4.85 4.20 $ 1.55 9.00 3.15 $ 1.80 0.50 S 0.45 The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to: A) $19.60 B) $22.75 C) $25.50 D) $10.60 50) The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative Net operating income $ 800,000 560,000 240,000 $ 100,000 110,000 210,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The net operating income computed using the contribution approach for the first quarter is: A) $30,000. B) $0. C) $140,000. D) $180,000