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1) Givenchy Company sells 100,000 wrenches for $12.00 per unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?
A. $950,000
B. $600,000
C. $850,000
D. $540,000
2) Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $3,330,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. Reference: Ref 6-2 The break-even point in dollars is Answe
r A. $8,325,000.
B. $9,000,000.
C. $7,744,186.
D. $1,232,100.
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows.
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dorsey co. has expanded its operations by purchasing a parcel of land with a building on it from bibb co. for 96000.
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