Given
Sales in units	10,000
Variable manufacturing costs per unit	5
Variable administrative costs per unit	2
Fixed manufacturing costs per unit	2
Fixed administrative costs per unit	1
Variable costs	75%	of sales
Selling price per unit?

		$2.22
		$9.33
		$17.50
		$20

Given for XM Company the following data for January 20X1.
Direct material purchased and used in production accounted for $	50000
Units purchased	5000
The standard units	4200
Managers estimate price variance not to exceed +1% of the (actual units X standard price) as favorable variance. The standard price should be

	1.	Greater than actual price paid for each unit
	2.	Smaller than actual price paid for each unit
	3.	The same as the actual price paid for each unit
	4.	More information is needed

Assume San Juan Printing Company asked you to evaluate two products (A&B). The following data pertains to these products. Product A: Selling price per unit 60; Variable cost per unit 40; Total fixed costs 20,000; Product A: Selling price per unit 80; Variable cost per unit 50; Total fixed costs 20,000. Analyzing the data at what production level do you recommend the company to adopt (1) product A, (2) product B, and at what production level the company's decision to produce A or B will be indifferent.