MCQ:

A- Variable costs for Swifty Corporation are 20% of sales. Its selling price is $100 per unit. If Swifty sells one unit more than break-even units, how much will profit increase?

$500

$80

$40

$20

B-Sunland Company sells 120000 wrenches for $24 per unit. Fixed costs are $700000 and net income is $400000. What should be reported as variable expenses in the CVP income statement?

$1602000

$1780000

$2180000

$2480000