When the variable costing income statement is used a

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9. When the variable-costing income statement is used: (a) all fixed costs are treated as product costs (b) the results are acceptable for income tax purposes (c) all variable costs are treated as product costs (d) all variable selling and administrative expenses are treated as period costs. 10. Inventoriable costs include: 11. Given for Drone Corp:, variable expenses $60,000, fixed expenses $133,000, sales $200,000. How much sales be to obtain a pre-tax net income of $14,000? 12. Casual Goods, Inc. manufactures a product that sells for $70 per unit. Variable costs per unit are $30, and total fixed costs are $15,000 per month. Compute the monthly sales needed to make a profit before taxes of $3,000 per month if there is no change in the selling price. 13. During May, sales for a certain product were $360,000 with total fixed costs of $162,000 and total variable costs of $144,000. Sales per month to obtain a profit of $27,000 per month before taxes would be: (a) $472,500 (b) $315,000 (c) $306,000 (d) $333,000 14. Von Corporation reported in a quarterly income statement: $150,000 of sales, $28,800 of fixed costs, $90,000 of variable costs, and $3,750 product units manufactured and sold. What must sales be to achieve a net income of $38,400 before income taxes? 11
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15. A company’s total contribution margin increased by $18,000 with no change in the contribution-margin percentage. The operating profit (income before income taxes) would be increased by: 16. The production of a company for a certain month consisted of 12,000 units of product, all of which were sold at $30 per unit. Total costs were $84,000 fixed and $144,000 variable. Compute breakeven production and sales per month: 17. For a certain month, a company reported $45,000 of sales, $18,000 of variable expenses, and $24,000 of fixed expenses. What is the breakeven sales per month? (a) $43,200 (b) $40,000 (c) $60,000 (d) none of the above 18. Bok, Inc has sales of $900,000, fixed costs of $213,000, and variable costs of $630,000. The breakeven point is: 19. Given for Stream Products: sales $50,000, variable expenses $30,000, fixed expenses $9,600, and number of product units sold 2,000. What is the breakeven point?
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