Variable production costs $480,000

Variable S and A costs $ 55,000

Fixed S and A costs $100,000

Fixed production costs $270,000

Unit sales price $ 8

Production in units 120,000

Sales in units 110,000

______ 1. Under variable costing, the cost per unit is:

$2.25

$6.25

$4.36

$4.00

______ 2. Under full costing, net income (loss) is:

$37,500

$15,000

$(25,000)

None of the above.

______ 3. Under variable costing, the contribution margin is:

$192,000

$345,000

$385,000

$400,000

______ 4. Under variable costing, total period costs are:

$155,000

$177,500

$425,000

$370,000

______ 5. Under full costing, cost of goods sold is:

$400,000

$495,000

$440,000

$687,500

______ 6. Full costing net income will be less variable costing net income when:

production equals sales.

production is greater than sales.

production is less than sales.

None of the above.

______ 7. Production costs under full costing do not include:

direct materials.

direct labor costs.

fixed overhead costs.

Fixed selling and administrative costs.

______8. When full costing net income equals variable costing net income, then:

production equals sales.

production is greater than sales.

production is less than sales.

None of the above.