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nates Corp. has the following information for its candy line Selling price per unit Unit sales Variable costs 100,000 5800,000 Fixed costs Based on a market study, Bates eatimates that t could increase the unit selling price bry 15% and lncrease the volame by i 0% irs 100,000 was spertonadvertising. Based on the analysis, wht would selling the candy if the decision is made to advertise? a. $337,500 b. $417,500 e. $497,500 d. $717,500 S200,000 unit sales Bates operating income be from Use the following to answer questions S-6. Lorillard Corporation has the following information for April: Units produced 12,500 Units sold 8,750 There were no beginning inventories for April and production costs per unit (based on 12,500 units) are as folows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable selling and admin. expenses $15 10 7.50 12.50 Fixed selling and admin. expenses 5. What is the April 30 finished goods inventory cost for Lorillard Corporation using the absorption costing method? a. $140,625 b. $187,500 c. $121,875 d. $206,250 finished goods inventory for Lorillard Corporation using the variable costing 6. What is the April 30 a. $140,625 b. $187,500 method? c. $121,875 d. $206,250 7. Restaurant Products produces two products, X and Y, in a single process. In 2011, the joint costs of this proc $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyon off point were X-$10,000; Y- $20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. What amount of joint costs will be allocated to Product X using the physical units method? b. $10,000 c. $25,000 d. $15,000

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