Operating income calculations use:

Select one:

a. nonoperating revenues and nonoperating expenses

b. net income

c. cost of goods sold and operating costs

d. income tax expense

Answer the following questions using the information below:

The XYZ Firm manufactures numerous various products. Unit costs associated with Product Abs 1 are as follows:

Direct materials

$ 40

Direct manufacturing labor

30

Variable manufacturing overhead

12

Fixed manufacturing overhead

20

Sales commissions (2% of sales)

4

Administrative salaries

14

Total

$120

What are the fixed costs per unit associated with Product ABS1?

Select one:

a. $34

b. $70

c. $82

d. $20

Cost management is not narrowly focused on a continuous reduction of costs.

Select one:

True

False

Sales total $300,000 when variable costs total $120,000 and fixed costs total $60,000. The breakeven point in sales dollars is:

Select one:

a. $180,000

b. $ 40,000

c. $120,000

d. $ 100,000

How many units would have to be sold to yield a target operating income of $20,000, assuming variable costs are $15 per unit, total fixed costs are $3,000, and the unit selling price is $35?

Select one:

a. 571 units

b. 1250 units

c. 1,000 units

d. 3,000 units

ABS's Plumbing reported the following:

Revenues $4,500

Variable manufacturing costs $ 900

Variable nonmanufacturing costs $ 810

Fixed manufacturing costs $ 630

Fixed nonmanufacturing costs $ 545

operating income equals

Select one:

a. $2,970

b. $3,600

c. $1,615

d. $2,790

ABS's Plumbing reported the following:

Revenues $4,500

Variable manufacturing costs $ 900

Variable nonmanufacturing costs $ 810

Fixed manufacturing costs $ 630

Fixed nonmanufacturing costs $ 545

gross margin percentage equals

Select one:

a. 64%

b. 66%

c. 60%

d. 61%

ABS's Plumbing reported the following:

Revenues $4,500

Variable manufacturing costs $ 900

Variable nonmanufacturing costs $ 810

Fixed manufacturing costs $ 630

Fixed nonmanufacturing costs $ 545

contribution margin percentage equals

Select one:

a. 62%

b. 70%

c. 65%

d. 60%

ABS's Plumbing reported the following:

Revenues $4,500

Variable manufacturing costs $ 900

Variable nonmanufacturing costs $ 810

Fixed manufacturing costs $ 630

Fixed nonmanufacturing costs $ 545

gross margin equals

Select one:

a. $2,790

b. $2,700

c. $1615

d. $2,970

ABS's Plumbing reported the following:

Revenues $4,500

Variable manufacturing costs $ 900

Variable nonmanufacturing costs $ 810

Fixed manufacturing costs $ 630

Fixed nonmanufacturing costs $ 545

the contribution margin equal

Select one:

a. $3600

b. $2790

c. $1615

d. $2160