Oxnard Inc maufactures hair spray that sells for $4.00 per unit. The business was started in 2012. The following data is summarized in the 2012 and 2013 opperations.

2012:

Units Sold: 4,500 Units Produced: 5,000 Cost: Variable factory overhead per unit: $0.80 Fixed factory overhead-total: $,2,500 Variable administractive per unit: $1.00 Fixed Administrative- total: $800

2013:

Units Sold: 5,500 Units Produced 5,000

Cost: Variable Factory overhead per unit: $0.80 Fixed factory overhead- total: $2,500 Variable administrative per unit: $1.00 Fixed Administrative-total: $800

1. using absorption costing. the cost of goods sold for 2012 is: a. $5,000 b.$4,500 c. $5,850 d. $3,600

2. Using absorption costing, the operating income for 2013 is: a. $15,850 b. $8,550 c. $8,800 d. $22,000

3. Using direct costing, the contribution margin for 2012 is: a. $9,900 b. $14,400 c. $5,850 d. $18,000

4. The difference in operating income between absorption and direct costing for 2013 is: a. 2,500 b. 6,000 c. 250 d. there is no difference