# Variable cost 3 how should the cost of advertising be

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How should the payroll cost for Jerry Karlin be classified? Variable cost 3. How should the cost of advertising be classified? Variable cost 4. How should the cost of the corn oil be classified? Overhead cost 5. How should the cost of the utilities be classified? Overhead cost 6. How should the payroll cost for Joseph Dolan be classified? Direct labor cost 7. If 32,000 units were produced, what are the variable costs per unit (rounded to the nearest penny)? 0.89 8. If 32,000 units were produced, what are the total fixed costs? 24,000 9. If the sales price is \$2.00 per unit, calculate the break-even point for the product line; as needed, round to the nearest whole unit. 21,622 10. If the company expects to sell 34,000 units next month, what is the projected net income using the contribution margin model? Per Unit Volume Total Revenue 2.00 34,000 68,000 Variable costs 0.89 30,260 Contribution margin 1.11 37,740 Fixed costs 24,000 Net income 13,740 11. If 32,000 units were produced, what are the product costs per unit (rounded to the nearest penny)? 1.04 12. If 32,000 units were produced, what are the total period costs? 19,200 13. If the company only sells 28,000 units this month, what amount would be reported as inventory on its month end balance sheet? 4,160

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Part 2 World Harvest, Inc. produces and sells packaged meals available in the frozen foods section of grocery
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