Schrute Farm Sales buys portable generators for $490 and sells them for $720. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $6,000 a month rent for his store, and also pays $1,700 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A. $360,000 OB. $623,000 O C. $97,000 D. $263,000 Perry Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling $270 $160 $690,000 13,500 units Upper management is considering using a biodegradable packaging which costs $8 more per unit but it produces less waste in the long run. Management plans to increase advertising by $12,000 in the first month to advertise new feature to their packaging. They believe that environmentally friendly people will switch to their product resulting in an increase in sales of 5,500 units per month How many units would the company have to sell to maintain current operating income if these changes are implemented? Round up to the nearest whole unit. O A. 13,609 units OB. 14,677 units O C. 13,500 units OD. Cannot be determined from the information given. Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $480,000 355,000 125,000 76,000 $49,000 Hiking $340,000 235,000 105,000 38,000 $67.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $25,000 per year, how will operating income be affected? O A. Decrease $5,000 OB. Increase $5,000 O C. Increase $54,000 OD. Increase $103,000