Question 9: Brooke Manufacturing sold 445,000 units of its product for E? 4 per unit in 2016. Variable cost per unit is 64 and total xed costs are 1,'?80,000_ Brooke's current mannctming process is labour intensive. Kate Becker, Brooke's production manager, has proposed investing in stateoftheart mannictnring equipment, which will increase the annual xed costs to 5,340,'0'0'0_ The variable costs are expected to decrease to60 permit. Brooke expects to maintain the same sales volume and selling price next year. What would be the contribution margin per unit and the operating prot ifBeclrer's proposal is accepted? Correct Answer: c- 14; 890,000 Question 10: Using the information below= what would be the prot under variable costing and absorption costinga respectively? Sales $ 120,000 Units Produced 35,000 Units Sold 33,260 Budgeted and achJal xed overhead cost 3 34,000 Direct marmfacnzing cost 5 21,000 Selling and administrative expenses 3 6,000 Correct Answer: c. $10,044; $14,220