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1.Key Company has a targeted sales volume of 62,300 units. Total fixed costs are $31,200. The contributionmargin per unit is $1.20. What is targeted net income?
a.$43,560
b.$74,760
c.$31,200
d.$37,440
2.________ is the excess of sales over the cost of goods sold.
a.Contribution margin
b.Gross margin
c.Contribution-margin ratio
d.Variable-cost ratio
3.Simon Inc. currently produces 110,000 units at a cost of $440,000. The cost is variable. Next year SimonInc. expects to produce 115,000 units. Simon's relevant range for production is 100,000 to 120,000 units. If115,000 units are produced next year, what is the expected variable cost?
a.$420,000
b.$430,000
c.$440,000
d.$460,000
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