1. Menlove Company had the following income statement for the most recent year:
Sales (17,000 units).......................$357,000
Variable expenses...........................255,000
Contribution margin........................102,000
Fixed expenses................................68,000
Net operating income.......................$34,000
A. $2 per unit
B. $15 per unit
C. $6 per unit
D. $4 per units
2. The following information relates to Clyde Corporation which produced and sold 50,000 per month
Sales............................$850,000
Manufacturing costs:
Variable........................$210,000
Selling and administrative expenses:
Fixed............................$300,000
Variable..........................$45,000
There were no beginning or ending inventories. Production and sales next month are expenses be 40,000 units. The company's unit Contribution margin next should be:
A. $16.63
B. $3.10
C. $7.98
D. $13.30