Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.

Sales (8,000 units)	$440,000
Variable expenses	280,000
Contribution margin	160,000
Fixed expenses	103,500
Net operating income	$ 56,500

If the company sells 7,900 units, its net operating income should be closest to:

If the company sells 7,900 units, its net operating income should be closest to:

$55,979

$56,500

$54,500 or 52,000

The break-even point in unit sales increases when variable expenses:

1.Increase and the selling price remains unchanged.

2.decrease and the selling price remains unchanged.

3.decrease and the selling price increases.

4. remain unchanged and the selling price increases.

The following information relates to Clyde Corporation which produced and sold 41,000 units last month.

Sales	$779,000
Manufacturing costs:
Fixed	$210,000
Variable	$140,400
Selling and administrative:
Fixed	$300,000
Variable	$ 44,100

There were no beginning or ending inventories. Production and sales next month are expected to be 31,000 units. The company's unit contribution margin next month should be: (Round your intermediate calculations and final answer to 2 decimal places)

Brisky Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below:

Overhead costs:
Equipment depreciation	$98,000
Supervisory expense	$13,400

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Machining	Order Filling	Other
Equipment depreciation	0.60	0.20	0.20
Supervisory expense	0.60	0.10	0.30

In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.

Activity:
	MHs (Machining)	Orders (Order Filling)
Product I3	6,060	112
Product U8	14,700	975
Total	20,760	1,087

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Sales and Direct Cost Data:
	Product I3	Product U8
Sales (total)	$83,550	$68,400
Direct materials (total)	$38,500	$22,400
Direct labor (total)	$22,000	$33,700

What is the overhead cost assigned to Product I3 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

$2,157.00

$19,513.00

$66,840.00

$21,670.00