As the level of activity decreases, how will a mixed cost in total and per unit behave? In Total Per Unit Increase Decrease Increase Increase Increase No effect Decrease Increase E) Decrease No effect Choice A Choice B Choice C Choice D None of the situations are inappropriate. Nikkel Corporation, a merchandising company, reported the following results for July: Sales........ $402,800 Total variable selling expense..... $17,100 Cost of goods sold (all variable)............ $193,800 Total fixed selling expense... $14,200 Total fixed administrative expense.. $30,100 Total variable administrative expense..... $17,600 The net operating income for July is: $140,000 $209,000 $233,700 $130,000 None of the above Holzhauer Corporation, a merchandising company, reported the following results for March: Number of units sold... 10,000 units Unit cost of goods sold... $130 per unit Selling price per unit.. $300 per unit Variable selling expense per unit. $18 per unit Total fixed administrative expense.. $142,700 Total fixed selling expense... $54,700 Variable administrative expense per unit......... $12 per unit Cost of goods sold is a variable cost in this company. The contribution margin for March is: $1,400,000 $1,120,000 $1,962,600 $1,360,000 None of the above D5. The cost of factory machinery purchased last year is: an opportunity cost a differential cost a direct materials cost. a sunk cost. D 6. Which of the following is an example of a cost that is variable with respect to the number of units produced? Rent on the administrative office building. Direct labor spray painting a product by hand Straight-line depreciation on factory equipment Salaries of top marketing executives