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Closet Links Clothing Company provided the following manufacturing costs for the month of June: $140,000 86,000 Direct labor cost Direct materials cost Equipment depreciation (straight
Closet Links Clothing Company provided the following manufacturing costs for the month of June: $140,000 86,000 Direct labor cost Direct materials cost Equipment depreciation (straight line) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes 23,000 14,000 12,400 3,000 19,000 15,000 From the above information, calculate Closet Link's total variable costs. A. $312,400 B. $67,400 C. $245,000 D. $226,000 Clay Earth Company sells ceramic pottery at a wholesale price of $6.00 per unit. The variable cost of manufacturing is $1.50 per unit. The fixed costs are $7,000 per month. It sold 5,600 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $26,600 B. $(18,200) C. $18,200 O D. $(7,000) A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $9.00 per unit $5.00 per unit $23,000 per month 10,000 units per month The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.25. How would this change affect operating income? A. It will increase by $13,000. B. It will increase by $17,000. C. It will decrease by $13,000. OD. It will decrease by $17,000
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