8 MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the statement or answers the question. Each multiple choice question is worth 7.5 points. 1) Data concerning Patriot Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $190.00 $91.20 $424,840 The unit sales to attain the company's monthly target profit of $16,000 is closest to: A) 4,462 units B) 3,872 units C) 4,834 units D) 2,320 units 2) Gillete Corporation reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is: A) 10 C) 2 D) 2.5 2) The following monthly data are available for the Foxborough Corporation and its only product: Unit selling price Unit variable expenses Total fixed expenses Actual sales for the month of May $36 $28 $50,000 7000 units The margin of safety for the company during May was: A) $6,000 B) $106,000 C) $27,000 D) $56,000 4) The principal difference between variable costing and absorption costing centers on: A) whether selling and administrative costs should be included in product costs. B) whether variable manufacturing costs should be included in product costs. C) whether fixed manufacturing costs and fixed selling and administrative costs should be included in product costs. D) whether fixed manufacturing costs should be included in product costs. 5) Which of the following is NOT an objective of the budgeting process? A) To provide a means of allocating resources to those parts of the organization where they can be used most effectively. B) To uncover potential bottlenecks before they occur. C) To communicate management's plans throughout the entire organization D) To ensure that the company continues to grow every year