Answer with brief explanation

13. Bear Publishing sells a nature guide. The following information was reported for a typical month:

		Total		Per Unit
Sales		$ 17,600		$ 16.00
Variable expenses		9,680		8.80
Contribution margin		7,920		$ 7.20
Fixed expenses		3,600
Net operating income		$ 4,320

Bear is expecting a 20 cent increase in variable expenses. No other changes are expected or planned. How much contribution margin should Bear expect after the increase?

Answer

A. $7,700

B. $4,100

C. $9,900

D. Cannot be determined.

Question 14 and 15 use the following information:

In October, Haldeman Corporation, a manufacturing company, reported the following financial data:

Sales		$ 460,000
Variable COGS		89,000
Fixed COGS		107,000
Variable selling expense		22,000
Fixed selling expense		59,000
Variable administrative expense		67,000
Fixed administrative expense		111,000

14. In a contribution format income statement, the contribution margin for October was:

Answer

A. $5,000

B. $183,000

C. $264,000

D. $282,000

15. In a traditional format income statement, the gross margin for October was:

Answer

A. $282,000

B. $183,000

C. $264,000

D. $5,000