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Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement

Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

A.

$50,000

B.

$78,000

C.

$118,000

D.

$68,000

If fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20, what is the break-even sales (units) if fixed costs are increased by $40,000?

A.

52,000 units

B.

60,000 units

C.

68,000 units

D.

62,000 units

If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?

A.

25,000

B.

20,000

C.

200,000

D.

10,000

Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $40,000?

A $10,000 increase

B. $10,000 decrease

C.

$30,000 decrease

D.

$30,000 increase

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