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Hall Inc. has the following data for the third quarter of 2017: Sales Fixed manufacturing overhead Direct labor Fixed selling expense Variable manufacturing overhead Variable

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Hall Inc. has the following data for the third quarter of 2017: Sales Fixed manufacturing overhead Direct labor Fixed selling expense Variable manufacturing overhead Variable administrative expense Direct materials Fixed administrative expense Variable selling expense $160,000 20,000 30,000 15,000 12,000 16,000 18,000 14,000 17,000 The contribution margin of Hall Inc. for the third quarter of 2017 was: a. $84,000. b. $67,000. c $112,000. d.) $132,000. 1. If the level of activity increases: a. variable cost per unit and total fixed costs also increase. b. fixed cost per unit and total variable cost also increases. c. total cost will increase and fixed cost per unit will decrease. d. variable cost per unit and total cost also increases. 2. 3. At an activity level of 18,000 units, total cost equals $99,000, variable cost per unit equals $3.00 and fixed costs total $45,000. If total cost increases to $129,000, then: a. the fixed cost per unit equals $2.50. b. the activity level increases by 10,000 units. c. the total average cost per unit equals $12.90. d. the activity level increases to 23,455 units. 4. Within the relevant range, fixed cost per unit: a. is unknown. b. decreases as production decreases. c. increases as production decreases. d. remains constant at each production level

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