MULTIPLE CHOICE:

At the high level of activity in November, 6000 machine hours were run and power costs were $22000. In April, a month of low activity, 1000 machine hours were run and power costs amounted to $13000. Using the high-low method, the estimated fixed cost element of power costs is

-$22000.

-$10800.

-$13000.

-$11200.

Bonita Industriess variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $55000. If sales are expected to increase $250000, by how much will the company's net income increase?

-$175000

-$195000

-$75000

-$120000

A company has total fixed costs of $210000 and a contribution margin ratio of 30%. The total sales necessary to break even are

-$273000.

-$490000.

-$700000.

-$175000.