A 1.In Contribution analysis, Contribution per unit is the: A. Cost of sales plus selling expenses B Selling price per unit less variable cost per unit C. Selling Price per unit less cost of goods Sold D. Selling Price less gross profit margin 2.The following are advantages of outsourcing except A. Better cash flow B. Lower investment risk C. Concentration on core competences D. Possibility of increased lead times 3.The Contribution/Sales Ratio is calculated as follows: A. Contribution per unit/Cost of Sales per unit B Contribution per unit/Budgeted cost per unit Contribution per unit/Selling price per unit D. Selling price per unit/Contribution per unit The following data relate to questions 4 and 5: 60 M (2 (2 Innovative projects Ltd is about to launch a new project. This new project requires the use of an existi machine that it will be sold if it isn't used. Information concerning this machine is provided below. Original Purchase Price Current Carrying Value Estimated Current Sales Value 40,000 10,000 8,000 4. Which of the following costs relating to the above machine is/are considered as sunk cost(s): i. ii. iv. Answer Original purchase price Accumulated depreciation Estimated current sales value Repair costs incurred in the previous three years A. (i) and (ii) B. (ii) and (iii) C. (i), (ii) and (iv) D. All of the above. 5. Which of the following costs relating to the above machine is/are considered as relevant cost(s): i. ii. iv. Answer Original purchase price Estimated current sales value Accumulated depreciation Repair Costs incurred in the previous three years A. (i) and (ii) B. (ii) and (ii) C. (i). (i) and (iv) D. (ii) only. The following information relates to questions 6 and 7 (2 m (2 mi