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Name: 5) Which of the following approaches to preparing an income statement includes a calculation of the gross margin? Traditional Approach Yes Yes No Contribution Approach Yes No Yes No No A) Choice A B) Choice B C) Choice C D) Choice D 6) Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present iob and start a company to manufacture and market the device. The salary that Mark earns at his present employ is: A) a variable cost B) a fixed cost C) a product cost D) an opportunity cost 7) Mecaskell Corporation's relevant range of activity is 7,000 units to 11.000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.30 $ 3.65 $ 1.75 $ 9.90 $ 2.25 $ 1.80 $ 1.00 $ 0.50 If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $14,000 B) $93,200 C) $89,100 D) S103,100