7. If the variable cost of goods sold totaled $80,000 for the year (16,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,250 (15,000 units at $5.75 each), the effect of the quantity factor on the change in the contribution margin is a a. $5,000 decrease b. $5,000 increase c. $5,750 increase d. $5,750 decrease 8. A business operated at 100% of its capacity during its first month and incurred the following costs: Production costs (20,000 units) Direct materials Direct labor Variable factory overhead Fixed factory overhead $180,000 240,000 280,000 100.000$800,000 Operating expenses Variable operating expenses Fixed operating expenses $130,000 180,000 If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a. $62500 b. $73,500 c. $60,000 d. $$2,500 -9. A business operates at 100% of its capacity during its first month and incurs the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $140,000 40,000 20,000 4000$204,000 Operating expenses: Variable operating expenses $ 34,000 2.000 Fixed operating expenses 36,000 If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the income from operations that would be reported on the variable costing income statement? a. $100,800 b. $100,000 c. $114,800 d. $140,000 Explore Page 2 gt Cangage Leaming Powered by Copnero