Question 9 (5 points) 4. Listen Fulton Enterprises sells three chemicals: petrol, septine and tridol, Petrol is the company's most profitable product (i.e., has the highest contribution margin ratio); tridol is the least profitable. Which one of the following events will definitely decrease the firm's overall breakeven point with regard to volume (i.c., decrease the number of combined units the firm needs to sell to breakeven) for the upcoming period? The purchase of new machinery and subsequent layoff of assembly workers An increase in sales of petrol relative to the sales of septine and tridol An increase in the cost of petrol's raw materials A decrease in the selling price of tridol Question 10 (5 points) Listen Jim's Shop sells three products: Product A, Product B, and Product C. Data regarding the three products sold by Jim's Shop are presented below. Product Unit Sales Price Unit Invoice Cost Number of Units Sold Product A $900 $700 800 Product B $1,500 $1,000 500 Product C $1,200 $900 700 Annual fixed costs are $300,000. Jim's Shop pays a 10 percent sales commission to its sales personnel What is the weighted average contribution margin per unit (WAUCM)? $194.50 $165.50 S230 $310 Page 1 of 2 Question 11 (5 points) Listen There is an important relation between contribution margin and profit. Which of the following statements is not true? As the number of units sold increases, total contribution margin increases, but fixed costs remain the same As the number of units sold increases, profit increases by the variable cost per unit. As the number of units sold decreases, profit decreases by the contribution margin per unit. O As the number of units old decreases, total contribution margin decreases, but fixed costs remain the same. Question 12 (5 points) Listen Smitt Inc, sells sweaters. During the current year, 10,000 sweaters were sold resulting in 300,000 of sales revenue, $120,000 of variable cost, and 80,000 of Fixed costs. If sales revenue increase by $45,000, operating income will increase by ? $30,000 $27,000 $45,000 $18,000 Question 13 (5 points) Listen Mark Sportswear manufactures a specialty line of T-shirts using a job order cost system. During May, the following costs were incurred in completing Job ICU2: direct materials $13,700, direct labor $4,800, administrative costs $1,400, and selling costs $5,600. Factory overhead was allocated at the rate of $25 per machine hour, and Job ICU2 required 800 machine hours. If Job ICU2 resulted in 7,000 good shirts, the product cost per shirt would be: $6.50 $6.30 $5.50 $5.70