1) Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme. Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme. Fixed expenses are $1,800,000.

At the expected sales level, Roosevelt's net income will be

A) $2,200,000.

B) $4,000,000.

C) $(200,000).

D) $ - 0 -.

Part 2

Stephanie, Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units?

A) It cannot be determined from the information provided.

B) It will increase.

C) It will decrease.

D) It will remain unchanged.

Part 3

It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

A) Increase $24,000

B) Decrease $12,000

C) Increase $12,000

D) Increase $108,000