Dybala Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit		Percent of Sales
Selling price	$	120				100	%
Variable expenses		84				70	%
Contribution margin		36				30	%

The company is currently selling 5,500 units per month. Fixed expenses are $120,000 per month. The marketing manager believes that a $7,600 increase in the monthly advertising budget would result in a 360 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

rev: 08_18_2016_QC_CS-57562

increase of $5,360

decrease of $7,600

increase of $12,960

decrease of $5,360

Carlton Corporation sells a single product at a selling price of $63 per unit. Variable expenses are $41 per unit and fixed expenses are $99,220. Carlton's break-even point is:

4,510 units

2,420 units

4,719 units

1,575 units

Lore Corporation has provided the following information:

Sales	$	360,000
Variable expenses	$	72,000
Fixed expenses	$	11,280

Lore's break-even point in dollar sales is:

$83,280

$11,280

$14,100

$72,000

Under absorption costing, product costs include:

	Variable manufacturing overhead	Fixed manufacturing overhead
A)	Yes	Yes
B)	No	No
C)	Yes	No
D)	No	Yes

Option A Option B Option C Option D The term gross margin is used in reports prepared using: both absorption costing and variable costing. absorption costing but not variable costing. variable costing but not absorption costing. neither variable costing nor absorption costing.