CENTRAL produces and sells a single product. Relevant data is presented below:

Number of units sold 10,000 units

Total Sales Revenue $1,000,000

Variable Costs:

Cost of Goods Sold (300,000) or $30/unit sold

Sales Commissions (100,000) or $10/unit sold

Fixed Costs:

Rent (100,000)

Advertising (200,000)

Net Operating Income $300,000 Suppose that CENTRAL. 1. Rents another plant at an annual cost of $150,000 per year (increasing Fixed Rent Expense to $100,000 to $250,000.

2. Increases sales commissions paid from $10/unit sold to $26/unit sold.CENTRAL estimates the two above described strategy changes will increase:

A. Sales price per/unit from $100/unit to $111/unit and, B. Unit sales to 15,000 units per year.Calculate CENTRAL's revised NET OPERATING INCOME if the above strategy is implemented. Select one:a. $375,000 b. None of the other answers are correct c. $400,000 d. $473,000 e. $450,000

Teebow produces a window called Frosty. The Direct Materials standards for one unit of Frosty are given below:

Standard Quantity per unit: 4.6 pounds per unit

Standard Cost: $3.00 per pound 20,000 pounds of Direct Materials were purchased and used during the period at an actual cost of $57,000 to produce 4,000 units of Frosty. Compute the DIRECT MATERIALS quantity and price variances and state whether each variance is Favorable or Unfavorable Select one:a. Direct Materials Quantity Variance: $4,800 Unfavorable; Direct Materials Price Variance: $3,000 Favorable b. Direct Materials Quantity Variance: $1,800 Unfavorable; Direct Materials Price Variance: $3,000 Unfavorable c. Direct Materials Quantity Variance: $3,000 Unfavorable; Direct Materials Price Variance: $1,800 Favorable d. None of the other answers are correct e. Direct Materials Quantity Variance: $3,000 Unfavorable; Direct Materials Price Variance: $1,800 Unfavorable

Santo Inc is a manufacturing firm that sells a single product. The company's revenues and costs for the last three months are given below:

Description April May June

Sales in Units 10,000 12,000 15,000

Sales Revenues $1,700,000 $2,040,000 $2,550,000

Costs:

Cost of Goods Sold (300,000) (360,000) (450,000)

Shipping (250,000) (280,000) (325,000)

Advertising (80,000) (80,000) (80,000)

Total Costs (630,000) (720,000) (855,000)

Net Operating Income $1,070,000 $1,320,000 $1,695,000 Please break out April total costs of $630,000 between their VARIABLE and FIXED Cost amounts. Select one: a. Variable Cost: $550,000; Fixed Cost: $80,000 b. Variable Cost: $630,000; Fixed Cost: $0 c. Variable Cost: $450,000; Fixed Cost: $180,000 d. Variable Cost: $300,000; Fixed Cost: $330,000 e. None of the other answers are correct