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Which of the following statements is false with respect to contribution format income statements? Multiple Choice They include contribution margin. They exclude period costs from variable expenses. They include fixed selling expenses. They separate expenses by their cost behavior. Which of the following statements is true? Multiple Choice Period costs include indirect materials and indirect labor. Period costs are excluded from the calculation of gross margin. Period costs and fixed costs are synonyms. Period costs may be included in inventory as reported on the balance sheet. Which of the following statements is false? Multiple Choice A common cost is a type of direct cost. A mixed cost has variable and fixed elements. Sunk costs are not differential costs. A cost object is anything for which cost data are desiredincluding products, customers, and jobs. A merchandiser plans to sell 14,400 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense Cost Formula $ 60 per unit sold $150,000 per month $70,000 per month $100,000 per month + $10 per unit sold $50,000 per month 5% of sales $15,000 per month What is the estimated net operating income for next month? Multiple Choice O $496,800 o $111,800 O $720,000 O $141,200 If the conversion costs are $70,000, direct labor costs are $20,000, and direct material costs are $40,000, then the manufacturing overhead must be: Multiple Choice $10,000. $30,000 O $50,000. $20,000