QUESTION 15 Zahra's Decoratives produces and sells a decorative pillow for $104.00 per unit. In the first month of operation, 2000 units were produced and 1750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $23.00 per unit Variable marketing costs $5.00 per unit Fixed Manufacturing costs $15.00 per unit Administrative expenses, all fixed $24.00 per unit Ending inventories Direct materials -0- WIP -0- Finished goods 250 units What is cost of goods sold per unit using variable costing? $23.00 $28.00 $67.00 $43.00 QUESTION 16 Ratzlaff Company has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials Direct labor Variable overhead Fixed overhead Marketing - fixed Marketing/distribution - variable $0.29 0.40 0.18 0.23 0.21 0.41 Current monthly sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1510 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted? $1706.30 increase in operating profits $4741.40 increase in operating profits $1706.30 decrease in operating profits $4741.40 decrease in operating profits