PC Solutions, Inc. provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 300 customers and earned $ 60 comma 000 $60,000 in revenue. The individual business segment provided services to 300 300 customers and earned $ 35 comma 000 $35,000 in revenue. The variable costs for the corporate and individual business segments amounted to $ 32 comma 500 $32,500 and $ 25 comma 000 $25,000, respectively. In addition, the fixed costs of the company amounted to $ 8 comma 000 $8,000. Calculate the contribution margin from each customer of the individual business segment. (Round your answer to the nearest cent.) A. $ 65.00 $65.00 B. $ 91.67 $91.67 C. $ 6.67 $6.67 D. $ 33.33 $33.33

2 Aqua Primavera, Inc. has provided the following information for the year. Units produced 11,000 units Sales price $500 per unit Direct materials $45 per unit Direct labor $30 per unit Variable manufacturing overhead $55 per unit Fixed manufacturing overhead $480,000 per year Variable selling and administration costs $75 per unit Fixed selling and administration costs $300,000 per year What is the unit product cost using variable costing? A. $174 B. $75 C. $130 D. $85

3

Periphery, Inc. has two

productslong dashpicture

frames and candle holders. Financial data for both the products follow:

	Picture Frames	Candle Holders
Units sold	2 comma 1002,100 units	800800 units
Sales price per unit	$ 500$500	$ 1 comma 200$1,200
Variable manufacturing cost per unit	310310	700700
Sales commission (% of sales)	66%	55%

Periphery has two sales

representativeslong dashAndrew

Novak and Liu Wei. Each sales representative sold a total of

1 comma 4501,450

units during the month of March. Andrew had a sales mix of

7070%

picture frames and

3030%

candle holders. Liu had a sales mix of

6060%

picture frames and

4040%

candle holders. What is the contribution margin ratio for picture frames and candle holders, respectively?

A.

6262%;

5858%

B.

3232%;

3737%

C.

66%;

55%

D.

3838%;

4242%

4

Gross profit is calculated by deducting ________ from sales revenue.

A.

cost of goods sold

B.

total variable costs

C.

selling and administrative costs

D.

total fixed costs

5

Happy Home, Inc. provides housekeeping services. The following financial data have been provided.

Service Revenue	$ 70 comma 000$70,000
Cleaning Supplies Used	21 comma 50021,500
Wages Expense	19 comma 35019,350
Office Rent Expense	5 comma 3505,350
Depreciation Expenselong dashMachinery	550550

Calculate the operating income for the company.

A.

$ 23 comma 800$23,800

B.

$ 29 comma 150$29,150

C.

$ 23 comma 250$23,250

D.

$ 42 comma 600$42,600