49 -

Number of parts per unit is most appropriate as a cost driver for which of the following types of activity costs?

Machining

46

Wesleys income statement is as follows: Sales (10,000 units)$150,000 Less variable costs- 48,000 Contribution margin$102,000 Less fixed costs- 24,000 Net income$ 78,000 If sales increase by 1,000 units, profits will:

	Increase by $12,000
	Increase by $10,200
	Increase by $4,800
	Increase by $8,000

5 points

Purchasing

Assembly

Payroll