QUESTION 38

1. Whammos income statement is as follows:

   Sales (10,000 units)	$80,000
   Less variable costs	- 48,000
   Contribution margin	$32,000
   Less fixed costs	- 24,000
   Net income	$ 8,000

   If sales volume increases by 10%, profits will:

   		Increase by $8,000
   		Increase by $800
   		Increase by $3,200
   		Increase by $5,200

2. QUESTION 39

3. Seatrain, Inc., which uses a predetermined overhead rate of $50 per direct labor hour, incurred actual overhead costs of $780,000 and used 18,000 direct labor hours. How much was Setrains over- or under-applied overhead for the month of June?

   		$120,000 underapplied
   		$18,000 overapplied
   		$18,000 underapplied
   		$120,000 overapplied

4. QUESTION 40

5. Hamilton Inc. reports the following numbers on their income statement (contribution format). What is the variable cost per unit?

   Sales (8,000 units)	$450,000
   Less: variable expenses	150,000
   Contribution margin	$300,000
   Less: fixed expenses	150,000
   Net operating income	$ 150,000

   		$28.75
   		$18.75
   		$56.25
   		$37.50