AP-9B LO 15 Lodrobe company manufactures a single product: wardrobes. Lodrobe's wardrobes have a unique design that is not replicated by any other wardrobe manufacturer. The company was formed at the beginning of last year with an initial investment of $800,000. Lodrobe requires a 25% annual rate of return on the investment. In total, 10,000 wardrobes were produced and sold last year. For the upcoming year, the production and sales volumes are not expected to change from last year. The following costs are budgetec for the upcoming year: Total (10,000 units) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead General and administrative expenses Per Unit $80 $70 $25 $100,000 $400,000 Which of the following statements regarding the high-low and least-square regression methods is true? Select one: a. The Least-square regression is simpler to perform manually than the high-low method. b. The least-squares regression method provides more accurate results than the high-low method. C. The high-low method provides more accurate results than the least-squares regression method. d. The high-low method usually provides the same results as the least-squares regression method. During the past year, a company made $2,000,000 in sales and incurred $800,000 in variable costs and $550,000 in fixed costs. What is the company's degree of operating leverage? Select one: a. 2.25. b. 1.85. 1.48. O d 0.54 Read, Inc. manufactures books. Last month they produced 12,000 books and sold 10,000 books. Operating data for the month of July is as follows. Variable Manufacturing Costs 960,000 Fixed Manufacturing Costs 240,000 Variable Operating Expenses Fixed Operating Expenses Prepare an Income Statement using Absorption Costing