1.Galose Coffee Company sold 7,000 units in October at a sales price of $45 per unit. The variable cost is $20 per unit. The monthly fixed costs are $8,000. What is the operating income earned in October? A.$315,000B.$175,000C.$167,000Your answer is correct.D.$140,0002.Fixed costs per unit decrease as production levels decrease.TrueAnswer: False3.Arturo Company sells two Generators Model A and Model B—for $454 and $396, respectively. The variable cost of Model A is $408 and of Model B is $314. If Arturo Company's sales incentives reward sales of the goods with the highest contribution margin, the sales force will be motivated to push sales of Model A more aggressively than Model B.TrueAnswer: False4.Browning Company sells two Products X and Y. Product X is sold for $30 per unit and has a variable cost per unit of $15. Product Y is sold for $30 per unit and has a variable cost of $10 per unit. Total fixed costs for the company are $20,000. Browning Company typically sells three units of Product X for every unit of Product Y. What is the breakeven point in total units? (Round any intermediate calculations to two decimal places, and your answer to the nearest unit.)

#### You've reached the end of your free preview.

Want to read all 4 pages?

- Fall '09
- Accounting, Contribution Margin, Total fixed costs, Arturo Company