Practice Problem 1: Last month, ABC Service, Inc. earned $50,000 of revenue by providing services for 1,000 customers. The firm incurred $12,000 of selling costs and $18,000 of administrative costs during the month. Q1: What is the firm's operating income for the month? Q2: What is the firm's cost per unit of service for the month? Practice Problem 2: DEF Merchandising, Inc. had the following information for August: Sales revenue = $50,000 Selling & administrative expenses = $5,000 Merchandise on July 31 = $500 Purchases in August = $22,000 Merchandise on August 31 = $900 Units sold = 2,000 Q1: What is the firm's COGS for the month? Q2: What is the firm's gross profit for the month?. Q3: What is the firm's operating income for the month? Q4: What is the firm's cost per unit sold for the month?. Practice Problem 4: All-About-Us, Inc. has collected the following information for February: Purchases of direct materials Direct labor Indirect labor Depreciation on machinery Sales Selling and expenses Rent on the factory building Direct materials administrative BB== BB = BB $54,00 0 31,200 15,000 Work-in-Process Finished Goods Q1: Cost of Goods Manufactured for February = Q2: Cost of Goods Sold for February Q3: Operating Income for February = = 9,000 165,00 0 18,900 21,000 $24,00 0 6,300 15,000 $26,100 EB= 9,600 EB= 17,100 EB= 3