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Sales Cost of goods sold (all variable) Total variable selling expense Total fixed selling expense Total variable administrative expense Total fixed administrative expense The contribution margin for October is: $ 447,000 $ 170,500 $ 20,100 $ 21,600 $ 8,500 $ 31,300 Multiple Choice $195,000 $394,100 $247,900 $276,500 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit Cost per Period $ 6.80 $ 3.70 $ 1.30 $ 23,000 $ 1.25 $ 0.60 $ 7,400 If the selling price is $26.70 per unit, the contribution margin per unit sold is closest to: Multiple Choice $9.96 $13.05 $16.20 $6.84 Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $470,000 or a new model 220 machine costing $423,000 to replace a machine that was purchased 5 years ago for $436,000. The old machine was used to make product (43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product 143L Management also considered, but rejected, the alternative of simply dropping product 143L. If that were done, instead of investing $423,000 in the new machine, the money could be invested in a project that would return a total of $450,000. In making the decision to invest in the model 220 machine, the opportunity cost was: Multiple Choice $470,000 $450,000 $423,000 $436,000 D At a sales volume of 43,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $580,500. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 40,400 units? (Assume that this sales volume is within the relevant range.) Multiple Choice $13.99 $14.37 $15.37 $13.50

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