Question 1 1: Monex reported $65,000 in net prot for the year using absorption costing. The company had no units in beginning inventory, planned and actual production was 20,000 units and sales were 13,000 units during the year. Variable manufacturing costs were $20 per unit and total budgeted xed manufacturing overhead was $100,000. There was no underapplied or overapplied overhead reported during the year. Determine the net prot under variable costing- Correct Answer: b. $55,000 Question 12: The Museum of Fine Art is preparing for its annual appreciation dinner for contributing members. Last year, 515 members attended the dinner. Tickets for the dinner were 26 per attendee. The prot report for last year's dinner follows. Ticket sales 14,950 Cost of dinner 15,9?5 Gross margin -1 .025 Invitations and paperwork 4000 Prot (loss) 51125 This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analysed last year's costs- Of the 15,505 cost of the dinner, 3,500 were xed costs and 7,4i'5 were variable costs. Of the 4,000 cost of invitation and paperwork, 2,350 were xed and 1,150 were variable. The committee is considering expanding this year's dinner invitation list to include volunteer members {in addition to contributing members). If the committee expands the dinner invitation list, it expects attendance to double. Calculate the contribution margin per unit and operating prot if volunteer members are invited. Correct Answer: d. 11; 1,300