A company that produces and sells a single product for $22 per unit has provided the following volume and average cost data for two accounting period:

Level of activity (unit) ---------------------------- ---------------- 1,000 2,000

Direct materials ------------------------- ------------------------ $4.00 $4.00

Direct Labor----------------------------------------------------- $3.00 $3.00

Manufacturing overhead-------------------------------------------- $3.50 $2.50

General, selling, and administrative expenses-------------- $1.00 $0.50

1. The best estimate of the total contribution margin when 4,300 units are sold is:

$64,500

$45,150

$58,050

$51,600

2. The best estimate of the Operating Income when 4,000 units are sold is:

$51,000

$55,050

$56,050

$51,600