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6. In the mixed cost function, Y = $35,000 +$8X, the $35,000 is a. total fixed cost b. total cost c. variable cost per unit d. number of units of cost driver Use the following information to answer questions 7-8 The Tingey Co. has 500 obsolete microcomputers, that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative the microcomputers can be sold in in their present condition for $50,000. 7. The sunk cost in this situation is: a. $720,000 b. $160,000 c. $50,000 d. $100,000 8. What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition? a. $ 660,000 disadvantage b. $ 110,000 advantage c. $ 10,000 advantage d. $ 60,000 advantage 9. The level of sales at which revenues equal expenses, and net income is zero is called a. margin of safety. b. contribution margin. c. break-even point. d. marginal income point. 10. Kimble Company gathered the following data about the three products that it produces: Present Estimated Additional Estimated Sales Product Sales Value Processing Costs if Processed Further A $ 9,000 $ 6,000 $ 16,000 B 15,000 5,000 18,000 11,000 3,000 16,000 Which of the products should not be processed further? a. Product A b. Product B c. Product C d. Products A and C

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