Part II - Problems -Cost behavior, - 3.0 points each. Total = 24 points. 1 When Sherka, Inc. sells 40,000 units, its total variable cost is $104,000. What is its total variable cost when it sells 45,000 units? A. $84,000 B. $96,000 C. $108,000 D. $117,000 2. When Sherka, Inc. sells 40,000 units, its total fixed cost is $96,000. What is its total fixed cost when it sells 45,000 units ? A. $84,000 B. $96,000 C. $108,000 D. It cannot be determined from the information given. 3. The per-unit amount of three different production costs for Thunderbird, Inc., are as follows: Production = 16,000 Production = 64,000 Cost A (per unit) $ 32.00 $ 8.00 Cost B (per unit) $ 24.00 S 18.00 Cost C (per unit) $ 19.20 $ 19.20 What type of cost is each? A) Cost A is fixed, Cost B is mixed, Cost C is variable. B) Cost A is fixed, Cost B is variable, Cost C is mixed. C) Cost A is variable, Cost B is mixed, Cost C is fixed. D) Cost A is variable, Cost B is fixed, Cost C is mixed. I 4, 5, 6 (9 points) Island Enterprises has presented the following information for the past eight months operations: Month April May June July August September October November Units 4,000 3,200 1,400 2,800 3,500 4,200 3,900 3,400 Total Cost $ 17,600 $ 14,900 $ 11,100 $ 13,200 $ 16,000 $ 17,400 $ 16,500 $ 15,700 4,5 Using the high-low method, calculate the variable cost per unit (3 pts) and fixed cost per month (3 pts). 6. What would total costs be for a month with 3,000 units produced (3pts)? 7. Arnold Corp has fixed costs of $25,000. Arnold expects profit of $325,000 at its anticipated level of production, 50,000 units. What is Arnold's unit contribution margin? A. $5 B. $10 C. $7 D. $20 I 8. Arnold Corp has a selling price of $20, variable costs of $16 per unit, and fixed costs of $25,000. If Arnold sells 12,000 units, the contribution margin ratio will equal A. $60,000 B. 25% C. 14.6% D. 20.%