1- Darwin Inc. sells a particular textbook for $24. Variable expenses are $16 per book. At the current volume of 52,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:

$416,000

$1,248,000

$1,664,000

$832,000

2- The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $30,000. If sales increase by $87,000, the company's net operating income will increase by:

$34,800

$22,200

$4,800

$70,200

3- Bolding Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $46,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $134,000?

$80,400

$7,600

$34,400

$88,000