If sales equal $327,980, variable expenses equal $200,000, and the degree of operating leverage is 12, then the net operating income is:

Multiple Choice

• $16,667.

• $10,665.

• $37,997.

• $27,332.

Assume a companys activity-based costing system includes three activities with the following activity rates:

Activity Cost Pool	Activity Rate
Travel	$ 2	per mile driven
Deliveries	$ 50	per delivery
Customer service	$ 22	per phone call

Two of the companys many customers include Customer A and Customer B. These two customers consumed the companys activities as follows:

	Total Expected Activity
	Customer A	Customer B
Travel (number of miles driven)	265	250
Deliveries (number of deliveries)	15	5
Customer service (number of phone calls)	20	12

How much cost would be assigned from the Travel activity to Customer A?

Multiple Choice

• $530

• $60

• $133

• $500

Assume a companys activity-based costing system includes three activities with the following activity rates:

Activity Cost Pool	Activity Rate
Travel	$ 2	per mile driven
Deliveries	$ 50	per delivery
Customer service	$ 22	per phone call

Two of the companys many customers include Customer A and Customer B. These two customers consumed the companys activities as follows:

	Total Expected Activity
	Customer A	Customer B
Travel (number of miles driven)	300	250
Deliveries (number of deliveries)	15	5
Customer service (number of phone calls)	20	12

If the company earned $2,190 in revenue serving Customer A, then what is the customer margin for this customer?

Multiple Choice

• $400

• $470

• $500

• $570