14. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be added to variable costing net operating income to arrive at the absorption costing net operating income.

True

False

15. If Sales is $208,000 and Variable expenses = $144,000 and Fixed expenses = $56,000 and Net operating income = $8,000, what is the contribution margin?

a. $64,000

b. $56,000

c. $8,000

d. $55,000

16. A company sells a product for $60 per unit. Variable costs are $36 per unit, and monthly fixed costs are $120,000. What is the break even point in total sales dollars?

a. $33,000

b. $24,000

c. $300,000

d. $4,800

17. The break-even point in unit sales is found by dividing total fixed expenses by:

Group of answer choices

a. the contribution margin ratio.

b. the contribution margin per unit.

c. the variable expenses per unit.

d. the sales price per unit.

18. A product line segment margin is sales minus

a. variable expenses.

b. traceable fixed expenses.

c. variable expenses and common fixed expenses.

d. variable expenses and traceable fixed expenses

19. Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if

Group of answer choices:

a. production equals sales for that period.

b. production exceeds sales for that period.

c. sales exceed production for that period.

d. the variable manufacturing overhead exceeds the fixed manufacturing overhead.