Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 67 Direct labor $ 50 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the companys unit product cost? Multiple Choice $127 $157 $147 $117

pt 2

Assume a company with two divisions (A and B) prepared the following segmented income statement:

	A	B	Total
Sales	$ 300,000	$ 200,000	$ 500,000
Variable expenses	120,000	150,000	270,000
Contribution margin	180,000	50,000	230,000
Traceable fixed expenses	100,000	60,000	160,000
Segment margin	$ 80,000	$ (10,000)	70,000
Common fixed expenses			50,000
Net operating income			$ 20,000

Division Bs dollar sales to break even is closest to:

Multiple Choice

• $360,000.

• $87,619.

• $260,000.

• $240,000.