YOU have been provided with the following information: Total Sales $ 186,000 Less Variable expenses 102,000 Contribution margin 84,000 Less fixed expenses 56,000 Operating profit $ 28,000 If sales decrease by 10%, what level of fixed costs will maintain the current operating profit? Multiple Choice $53,600. $28,000. $47,600. $56,000.

Artis Sales has two store locations. Store A has fixed costs of $140,000 per month and a variable cost ratio of 65%. Store B has fixed costs of $250,000 per month and a variable cost ratio of 40%. At what sales volume would the two stores have equal profits or losses?

Multiple Choice

$390,000.

Cannot determine with the information given.

$371,429.

$440,000.

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

Activity	Cost Driver	Amount			M		XY
Production setups	Number of setups	$	90,000		6		14
Material handling	Number of parts		48,000		56		24
Packaging costs	Number of units		333,750		111,000		74,000
		$	471,750

What is the total overhead allocated to Product M using the current system?

Multiple Choice

$210,900.

$260,850.

$283,050.

$333,750.