Multiple Choice Select the best answer to each question. Space is provided for computations after the quantitative questions. Part One 1. During its first year of operations, Vintage Co. made 4,000 units of a product and sold 3,000 units for $600,000. There was no ending work in process. Total costs were $600,000:$250,000 of direct materials and direct manufacturing labor, $200,000 of manufacturing overhead costs (50\% fixed), and $150,000 of nonmanufacturing costs (100\% variable). The cost of the 1,000 units of ending finished goods inventory under variable costing is: a. $112,500. b. $125,000. c. $87,500. d. none of the above. 2. Using the information in question 1 , the cost of ending finished goods inventory under absorption costing is: a. $112,500. b. $150,000. c. $25,000. d. none of the above. 3. Using the information in question 1 , the contribution margin is: a. $337,500. b. $187,500. c. $100,000. d. none of the above