Name Date: Apal 8,2020 PART L-The following questions are warth 2.5 pts, each wayth Given Gross Margin of $212,000, Cost of Goods Sold of $544,000, Sales of $756,000 and net income of $65,000, what is Selling General and Administrative expense $147.000 b. $132,000 c. $156,000 d. $488,000 c. $212,000 If the production volume of an activity increases from 100,000 units to 200,000 units the variable cost, per unit Remains the same b. Decreases by 50% c. Increases by 50% d. Decreases by 100% e. Increases by 100% 3 The Statement of Cash Flows using the Indirect Method: & Reports Cash Flows from Operating, Investing and Manufacturing Activities b. Uses activities from all non-cash accounts on the Balance Sheet c. Should equal Net Income from the P&I, Statement d. Reports the balance of Accounts Receivables e. Should equal the change is the Retained Earnings account from the Balance Sheet Which of the following costs would normally be considered a variable cost in the manufacturing facility? a. Utility costs for the production facility b. Rent based on square footage Raw materials used in production d. Plant Managers' hourly wage rate e. Sales commissions based on sales dollars As production decreases, fixed cost per unit Increase b. Equal variable costs per unit c. Stay fixed, then exceed variable costs d. Remain constant e. Decrease An Opportunity Cost is: a. An Income Sheet account that normally carries a debit balance b. A cost that is irrelevant in decision making c. Is constant when production volumes increase d. Is only calculated when an asset is sold The potential benefit, given up, when selecting one alternative versus another