Swifty Corporation produces two models: Model 24 has sales of 350 units with a contribution margin of $40 each; Model 26 has sales of 200 units with a contribution margin of $50 each. If sales of Model 26 increase by 50 units, how much will profit change? $12500 increase $10000 increase $20000 increase $2500 increase Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10000 direct labor hours and the Luxury requires 30000 direct labor hours. The company produces 3400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $752000 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Basic model using ABC costing? $376000 $639200 $272000 $188000 A company incurs $4265000 of overhead each year in three departments: Ordering and Receiving, Mixing and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of Goo and 600000 drums of Slime. The following data are available: Department Estimated use of Driver Cost Ordering and Receiving 2000 $1400000 Mixing 50000 1500000 Testing 1500 1365000 Production information for Goo is as follows: Department Ordering and Receiving Mixing Testing Estimated use of Driver 400 20000 500 Compute the amount of overhead assigned to Goo. $1666140 $1335000 $2132500 $1066250 The following monthly data are available for Bonita Industries which produces only one product: Selling price per unit, $54; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 7000 units. How much is the margin of safety for the company for June? $5950 $279300 $238000 $321300