Reference no: EM132579525

Question 1: Given the following information, determine the product cost of one unit: Direct Materials = $60; Direct labor = $10; Apply Overhead based on $2 per Direct Labor hour; Direct labor hours is 4 hours per unit.

a. $70 per unit

b. $80 per unit

c. $78 per unit

d. $85 per unit

Question 2: Contribution margin is sales less:

a. Fixed overhead and fixed selling and administrative expenses

b. Variable Cost of goods sold and variable selling & administrative expenses

c. Variable selling and administrative expemses and Fixed selling and administrative expenses

d. variable cost of goods sold

Question 3: An investment generates an operating income of $100,000, and the average operating assets are $400,000. What is the return on the investment?

a. 100%

b. 75%

c. 25%

d. 20%