1. The Sports Arena location of Burger Heaven reports monthly sales of $140,000, variable costs of $63,000, and traceable fixed costs of $54,000. The contribution margin ratio of this business unit is:
   1. 70%.
   2. 45%.
   3. 55%.
   4. 16.4%.

2. Which of the following costs is traceable to an individual sales department in a department store such as Sears?
   1. Salary of the store manager.
   2. Depreciation on the store building.
   3. Salaries of store security guards.
   4. Salary of a sales associate.

3. The use of activity-based costing is most appropriate for: A. Firms that manufacture multiple product lines.
   2. Firms that have very low manufacturing overhead costs relative to other costs of production.
   3. Firms with high levels of production activity.
   4. Firms that account separately for product and period costs.