I Multiple Choice-Choose the best answer: (10 pts.) . A product sells for $400 per unit and its variable costs per unit are $260. The company's fixed costs are $840,000. If the company desires a $70,000 pretax income, what is the required dollar sales? A) $2,400,000. B) $200,000. C) $2,600,000 D) $2,275,000 E) $1,400,000 2 Mentor Corp. has provided the following information for the current year 3,500 units 70 per unit 55 per unit 20 per unit 350,000 $30 per unit irect materials Direct labor Variable selling and administrative costs ixed selling and administrative costs Calculate the unit product cost using absorption costing. A) $245 B) S275 C) $55 D) $145 4. Which of the following is not included in the product cost under variable costing? A) Direct materials B) Fixed manufacturing overhead. C) Direct labor. D) Variable manufacturing overhead. E) All variable manufacturing costs. 3. when production is less than sales, which of the following is true? A) No change occurs to inventories for either absorption costing or variable costing methods. B) Use of absorption costing produces a higher net income than the use of variable costing. C) Use of absorption costing produces a lower net income than the use of variable costing. D) Use of absorption costing causes inventory value to decrease more than it would through the use of var costing. 5. A company's actual direct material costs were $30,240 (108,000 lb X $.28/lb) and its standard was $ (108,000 lbs x $.31lb). Compute the price variance. A) ) C) D) $3.240 F so $3,240 U $4,420 F