(Do not round interim calculations and round the final answer to the nearest unit A) 1,082 units B) 929 units C) 650 units D) 817 units THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 5 THROUGH 7. Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs $600, and fixed costs $60,000. 5. What is the Bridal Shoppe's operating income when 200 dresses are sold? A) B) C) D) $30,000 $80,000 S20,000 $100,000 6. If variable costs increase by 10% and fixed costs increase to S65,000, what is the Bridal Shoppe's operating income when 200 dresses are sold? A) B) C) D) S 3,000 $20,000 $12,000 $22,000 7. If variable costs increase by 20%, the selling price increases by 20%, and fixed costs increase to $75,000, what is the Bridal Shoppe's operating income when 200 dresses are sold. A) $39,000 B) SO C) ($9,000) D) $21,000 8. Mount Carmel Company sells only two products, Product A and Product B. Total Selling price Variable cost per unit Total fixed costs Product A Product B S40 $50 ) $24 $40 $840,000 Mount Carmel sells two units of Product A for each unit it sells of Product B. Required: a. What is the breakeven point in units for each product assuming the sales mix is 2 units of Product A for each unit of Product B? units of A and units of B The following information applies to questions 9 and 10. Company AB Sales Variable cost Contribution margin Fixed expenses Operating income $100,000 60,000 40,000 20,000 20,000 $100,000 40,000 60,000 40,000 20,000 9. If Company A experiences a 40% increase in sales, operating income would increase to: A) $32,000 B) S24,000 C) $28,000 D) $36,000 10. Which of the following statements is true? A) Company A has a higher operating leverage than Company B. B) Company B has assumed higher risk than Company A, but also has a higher potential for profits if sales increase. C) Company A has assumed less risk than Company B, but has a higher potentialfor profits if sales increase. D) there is a higher possibility of net loss for Company A