1. Jim manufactures sunglasses and reported sales revenues of $210,000 and total costs of $56,000 this year. Jim incurs variable cost that is 10% of sales. What would the total costs be if sales were $168,000?
   1. $16,800
   2. $32,000
   3. $41,400
   4. $51,800
   5. Some other amount
2. Emma Corp. has only variable costs and fixed costs. A review of the companys records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the cost per unit manufactured totaled $11. On the basis of this information, how much cost would the firm anticipate at an activity level of 205,000 units?
   1. $2,235,000
   2. $2,222,000
   3. $2,214,000
   4. $2,200,000
   5. Some other amount