8. Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution Model K-3 is $6; the unit contribution margin for Model P-4 is $14. Each model must spend time on a special The firm owns two machines that together provide 4,000 hours of machine time per year. Model K-3 requires of machine time; Model P-4 requires 30 minutes of machine time. What is the contribution margin per unit of scarce resource (machine time) for Model K-3? a. $12 b. $14 c. $6 d. $24 e. $28 9. Total operating expenses on Ocean Company's income statement for last year totaled $400,000. During accrued liabilities increased by $23,000 and prepaid expenses increased by $16,000. Depreciation expense was $30,000. Based on this information, operating expenses adjusted to a cash basis under the direct meth statement of cash flows would be: a. $363,000. b. $300,000. c. $272,000. d. $518,000. 0. An increase in output leads to a(n): a. decrease in sunk cost. b. increase in total variable cost. c. increase in total fixed cost. d. decrease in step cost. Which of the following would probably be a fixed cost in a fast-food restaurant? a. shift manager's salary b. cost of french fries c. cost of hamburger d. utility cost