A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 Income under variable costing $ 95,000 $ 128,000 $ 134,000 Beginning inventory (units) 0 990 595 Ending inventory (units) 990 595 0 Fixed manufacturing overhead per unit $ 12.00 $ 12.00 $ 12.00 Income for the 3-year period using absorption costing is: Multiple Choice $330,720. $370,140. $357,000. $371,230. $371,280.

18. Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $460 and has a unit contribution margin of $145; the Adult model sells for $930 and has a unit contribution margin of $490; and the Recreational model sells for $1,240 and has a unit contribution margin of $540. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,580,000, calculate the firm's contribution margin ratio per composite unit (rounded to the nearest whole percentage). Multiple Choice 32% 46% 53% 216% 41%

Kent Manufacturing produces a product that sells for $70.00. Fixed costs are $163,200 and variable costs are $28.00 per unit. Kent can buy a new production machine that will increase fixed costs by $8,840 per year, but will decrease variable costs by $5.60 per unit. Compute the revised break-even point in dollars with the purchase of the new machine.

Multiple Choice

• $272,000.

• $240,000.

• $286,733.

• $217,600.

• $253,000.