6. The budget of Nightingale Company for the upcoming year revealed the following figures: sales revenue $900,000; contribution margin $604,000; net income $58,000. If the company's break-even sales total $800,000, Nightingale's safety margin would be:

A. $296,000. B. $742,000. C. $58,000. D. $196,000. E. $100,000.

7. Tetra Manufacturing has the following sales mix for its three products: A, 40%; B, 20%; and C, 40%. Fixed costs total $800,000 and the weighted-average contribution margin is $100. How many units of product A must be sold to break-even?

A. 20,000. B. 32,000. C. 8,000. D. 4,800. E. 3,200.

8. Red River Company sells its product for $12,000 per unit. Variable costs per unit are: Manufacturing overhead -$8,000 Selling and administrative -$150 Fixed costs are: Manufacturing overhead -$30,000 Selling and administrative -$40,000 Red River had no beginning inventory at January 1, 2010. Production was 20 units each year in 2010, 2011, and 2012. Sales were 20 units in 2010, 16 units in 2011, and 24 units in 2012. Income/(Loss) under absorption costing for 2012 is:

A. $7,000. B. ($2,400). C. $60,000. D. $56,400. E. $16,400.

9. Red River Company sells its product for $12,000 per unit. Variable costs per unit are: Manufacturing overhead -$8,000 Selling and administrative -$150 Fixed costs are: Manufacturing overhead -$30,000 Selling and administrative -$40,000 Red River had no beginning inventory at January 1, 2010. Production was 20 units each year in 2010, 2011, and 2012. Sales were 20 units in 2010, 16 units in 2011, and 24 units in 2012. Income/(Loss) under variable costing for 2012 is:

A. $48,000 B. $16,400. C. $22,400. D. $40,400. E. $12,000.