income statement. What is the contribution margin income? A) $350,000 B) $425,000 C) $575,000 D) $650,000 12. NEIU Company has no beginning and ending inventories, and reports the following data about its only product: Direct materials used $350,000 Direct labor $175,000 Fixed indirect manufacturing $150,000 Fixed selling and administrative $125,000 Variable indirect manufacturing $100.000 Variable selling and administrative $75,000 Selling price(per unit) $100 Units produced and sold 20,000 NEIU Company uses the full absorption approach to prepare the income statement. What is the gross profit? A) $750,000 B) $1,000,000 C) $1,150,000 D) $1,225,000 between two 13. Differential cost is the difference in alternatives. A) average cost B) marginal cost C) median cost D) total cost 14. Incremental costs are the generated by a proposed alternative. A) additional revenues B) additional revenues or reduced costs C) reduced costs D) additional costs or reduced revenues mugul, gross margin 4. A company is trying to decide which product to manufacture. The following information is available! Costs Direct Materials 1 Direct Materials 2 Direct Materials 3 Direct Labor Product A $4.50 per unit $1.75 per unit $3.75 per unit $1.10 per unit Product B $5.00 per unit $2.50 per unit $2.75 per unit $1.10 per unit Which product cost is irrelevant to the decision? A) Direct Materials 1 B) Direct Materials 2 C) Direct Materials 3 D) Direct Labor 5. Green Company has no beginning and ending inventories, and repr information for its only product