Amazon has two divisions: Division K and Division L. Data from the most recent month appear below:

	Total Company		Division K			Division L
Sales	$	544,000	$	248,000		$	296,000
Variable expenses		187,760		54,560			133,200
Contribution margin		356,240		193,440			162,800
Traceable fixed expenses		254,000		136,000			118,000
Segment margin		102,240		57,440			44,800
Common fixed expenses		54,400		24,800			29,600
Net operating income	$	47,840	$	32,640		$	15,200

Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division K is closest to:

Select one:

a.

$174,359

b.

$244,103

c.

$206,154

d.

$470,945

*Amazon produces a single product. Last year, the company had net operating income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and 27,000 units, respectively. If the fixed manufacturing overhead cost was $5 per unit both last year and this year, what was the income using absorption costing?

a.

$65,000.00

b.

$15,000.00

c.

$25,000.00

d.

$150,000.00

*Amazon is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.30 per liter. Material W34C is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $7.60 per liter. New stocks of the material can be readily purchased for $8.35 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?

Select one:

a.

$6,513

b.

$6,481

c.

$6,376

d.

$5,928

*Amazon has provided the following data for its most recent year of operation:

Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	11
Direct labor	$	7
Variable manufacturing overhead	$	5
Fixed manufacturing overhead per year	$	308,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	5
Fixed selling and administrative expense per year	$	81,000

Units in beginning inventory	0
Units produced during the year	11,000
Units sold during the year	9,000
Units in ending inventory	2,000

Which of the following statements is true?

Select one:

a.

The amount of fixed manufacturing overhead deferred in inventories is $459,000

b.

The amount of fixed manufacturing overhead deferred in inventories is $56,000

c.

The amount of fixed manufacturing overhead released from inventories is $459,000

d.

The amount of fixed manufacturing overhead released from inventories is $56,000