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Moore Manufacturing Inc., a profitable company, sells a product for $10 per unit. The variable expenses are S6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000? a. $24,000 increase b. $16,000 increase c. $11,000 increase d. $5,000 increase 6. Dalecia Company produces a single product which sells for $100 per unit. Fixed expenses total $12,000 per month, and variable expenses are $60 per unit. The company's sales average 500 units per month. Which of the following statements is correct? a. The company's breakeven point in sales dollars is S12,000 per month. b. The fixed expenses remain constant at $24 per unit for any activity level within the 7. relevant range. c. The company's contribution margin ratio is S40. d. All of the above are correct. 8. Inventoriable (i.e., product) costs that have become expenses can be found in a. Period costs. b. Selling expenses. c. Cost of goods sold d. Administrative expenses. Which of the following statements about product costs is true? a. b. e. 9. Product costs are deducted from revenue when the production process is completed. Product costs are deducted from revenue as expenditures are made. Product costs associated with unsold finished goods and works in process appear on the balance sheet as assets. d. Product costs appear on the financial statements only when the products are sold. 10. Which of the following is correct? The breakeven point on the CVP graph occurs where a. Total profits equal total expenses. b. Total profits equal total fixed expenses. e. Total Contribution Margin equals total fixed expenses. d. Total variable expenses equal total contribution margin

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