Question 1

Johansson Company developed the following static budget at the beginning of the company's accounting period:

Revenue (9,500 units)	$19,000
Variable costs	4,750
Contribution margin	$14,250
Fixed costs	4,750
Net income	$ 9,500

If the actual volume of sales was 9,900 units, the flexible budget would show variable costs of (Do not round intermediate calculations.):

A. $4,750.

B. $19,800

C. $9,500.

D. $4,950.

Question 2

Jamison Company has an investment in assets of $969,000, income that is 10% of sales, and an ROI of 19%. From this information the amount of income would be:

A. $184,110.

B. $87,210.

C. $96,900.

D. $281,010