Heading 3 Normal No Spacing Heading 1 14 BFA612 Management and Cost Accounting SECTION B- MULTIPLE CHOICE. Answer the following TEN (10) multiple-choice questions on the attached answer sheet in the last page. Highlight the letter that corresponds to the most appropriate answer to each of the following multiple-choice questions. Each question is worth 2 marks. Q6: Friendly Company projects sales for the coming year will be $20,000,000. It has variable manufacturing and selling expenses of $7,500,000. Annual fixed operating costs amount to $12,000,000. Friendly's contribution margin ratio is: I A. 55%. B. 45%. C. 62.5% D. None of the above is correct Answer the following questions (7 to 9) using the information below: In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Overhead totalled $35,000 for the month. Information on inventories was as follows: July 1 July 31 Materials $6,200 $7,100 $2