Figure 8-12. Assume the following information for a product line:

Sales	$700,000
Variable expenses	185,000
Direct fixed expenses	115,000
Variable selling and administrative expenses	70,000
Direct fixed selling and admin. expenses	90,000

13. Refer to Figure 8-12. What is the contribution margin of the product line?

	a.	$400,000
	b.	$525,000
	c.	$445,000
	d.	$515,000

14. Refer to Figure 8-12. What is the segment margin of the product line?

	a.	$200,000
	b.	$325,000
	c.	$350,000
	d.	$240,000

15. The two major costs associated with inventory are

	a.	ordering costs and setup costs.
	b.	setup costs and stockout costs.
	c.	stockout costs and carrying costs.
	d.	ordering costs and carrying costs.
	e.	None of these.