1. Data concerning Dakota Enterprises' operations last year appear below:

Units in the Beginning Inventory	-0-	Units
Units Produced	2,900	Units
Units Sold	2,600	Units

Selling Price Per Unit	$160
Variable Costs Per Unit:
Direct Material	$49
Direct Labor	58
Manufacturing Overhead	6
Sellling and Administrative Costs	11
Fixed Costs in Total:
Manufacturing Overhead	$55,100
Selling and Administrative Costs	18,200

Match each of the following items with the proper amount.

- A. B. C. D. E. F. G. H. I. J.	Unit Product Cost , Using Absorption Costing
- A. B. C. D. E. F. G. H. I. J.	Unit Gross Margin
- A. B. C. D. E. F. G. H. I. J.	Total Gross Margin
- A. B. C. D. E. F. G. H. I. J.	Unit Product Cost , Using Variable Costing
- A. B. C. D. E. F. G. H. I. J.	Unit Contribution Margin
- A. B. C. D. E. F. G. H. I. J.	Total Contribution Margin
- A. B. C. D. E. F. G. H. I. J.	Total Selling and Administrative
- A. B. C. D. E. F. G. H. I. J.	Total Fixed Costs
- A. B. C. D. E. F. G. H. I. J.	Net Income, Using Absorption Costing
- A. B. C. D. E. F. G. H. I. J.	Net Income, Using Variable Costing

A.	$46,800
B.	$132.00
C.	$36.00
D.	$113.00
E.	$20,300
F.	$28.00
G.	$73,300
H.	$93,600
I.	$26,000
J.	$72,800

2... MSU Company's advertising manager has proposed a promotion plan that will cost $25,000. It is expected that the sales will increase by 4,000 units. The sales price of the product is $20 and the variable expense is $15. What will be the overall effect on the company's net operating income as the result of this change? a. $25,000 Decrease b. $5,000 Increase c. $55,000 Increase d. $5,000 Decrease