Spacely Company sells sprockets for $20. The following is the projected income Statement for 2015. Variable costs are the cost of the sprockets, $10 each plus a 10% sales commission paid to the worker Sales Cost of Sprockets Sold Gross Margin Operating Expenses $300,000 150.000 150,000 60,000 Salaries and Commissions Rent Other Fixed Expenses Total Operating Expenses Net Income 24,000 10.000 94.000 $ 56.000 1) For Spacely, the number of sprockets he needs to sell to break even are A) 8,878 B) 8,000 C) 6,620 D) 9,400 E) need more information to calculate this 2) Sa Spaceny the les in dolan) of sprocket necesanyto mke $120,00 ar year s approximately A) $405,500 B) $174,000 C) $184,000 D) $460,000 E) none of these 3) The difference between MACRS depreciation and accounting depreciation is a: A) B) C) D) E) Temporary difference Permanent difference The MACRS difference The IFRS difference An accounting difference 4) As volume increases (within the relevant range) A) Total Fixed costs remain the same B) Total Variable Costs remain the same C) The Break-even sales decreases D) The Break-even sales increases E) None of these is true