Alvarez Company is facing an 58 increase in the variable costs of producing one of its products for the upcoming year As a result, the sales manager has made a proposal to increase the sales price of the product while increasing the advertising budget at the same time. The sales price increase will lower sales volume, but the other changes may help the company maintain its profit margin Alvarez has provided the following information regarding the current year results and the proposal made by the sales manager Unit sales Sales price per unit Variable cost per unit Fixed cost Current Year Proposal 27,000 18,000 548 $54 $32 $40 580,000 $96.000 Relative to the current year, the sales manager's proposal will O A decrease operating income by $196,000 OB. decrease the unit breakeven point OC. decrease operating income by 5324,000 OD. Increase contribution margin by $196,000 Garrett Corporation provided the following information for the year. Beginning BalanceWork-in-Process Inventory Ending Balance-Work-in-Process Inventory Beginning Balance-Direct Materials Ending Balance - Direct Materials Purchases - Direct Materials Direct Labor Indirect Labor Depreciation on Factory Plant and Equipment Plant Utilities and Insurance $27,000 56,000 83,000 60,000 360,000 471,000 18,000 25,000 271,000 What was the amount of direct materials used in production during the year? O A. $360,000 OB. 566,000 O C. $383,000 OD. 5831,000