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Use the following information to answer questions 6 - 7: Units sold 15,000 Sales $270,000 Fixed expenses $125,000 Net operating loss ($20,000) 6. What is

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Use the following information to answer questions 6 - 7: Units sold 15,000 Sales $270,000 Fixed expenses $125,000 Net operating loss ($20,000) 6. What is the "Contribution margin per unit"? 7. What are "Variable expenses? Use the following information to answer question 8 Sales $600,000 Variable expenses $400,000 Fixed expenses $150,000 8. What is the degree of operating leverage?__ 9. How are fixed manufacturing costs treated using absorption costing and variable costing? Absorption costing Variable costing 2 Product cost Product cost b. Period cost Period cost c. Product cost Period cost d. Period cost Product cost GROSS 10. If variable selling and administrative costs increased, how would the gross margin and contribution margin, respectively, be affected? Contribution marrin Not affected b. Not affected Not affected Decret d Not affected Decres Decre Not affected

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