6. Alpha Corporation reported the following data for its most recent year: sales, $630,000; variable expenses, $280,000; and fixed expenses, $280,000. The company's degree of operating leverage is closest to:

A. 9.00

B. 1.00

C. 5.00

D. 1.80

7. A cement manufacturer has supplied the following data:

Tons of cement product and sold	230,000
Sales revenue	$934,000
Variable manufacturing expense	$285,000
Fixed manufacturing expense	$286,000
Variable selling and admin expense	$135,300
Fixed selling and admin expense	$84,000
Net operating income	$143,700

The company's contribution margin ratio is closest to:

A. 38.9%

B. 55.0%

C. 69.4%

D. 15.4%

8. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning inventory	0
Units produced	5,000
Units sold	4,900
Units in ending inventory	100
Variable costs per unit:
Direct materials	$61.00
Direct labor	$63.00
Variable manufacturing overhead	$26.00
Variable selling and admin expense	$24.00
Fixed costs:
Fixed manufacturing overhead	$105,000
Fixed selling and admin expense	$49,000

A. $174 per unit

B. $195 per unit

C. $150 per unit

D. $151 per unit

9. Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced	5,900
Variable costs per unit:
Direct materials	$66.00
Direct labor	$60.00
Variable manufacturing overhead	$7.00
Variable selling and admin expense	$15.00
Fixed costs:
Fixed manufacturing overhead	$200,600
Fixed selling and admin expense	$454,300

A. $126 per unit

B. $167 per unit

C. $133 per unit

D. $259 per unit

10. Bellue Inc. manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory decreased by 2,700 units. Fixed manufacturing overhead cost was $2 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?

A. $5,400

B. $90,900

C. $96,300

D. $99.000