Questions -

1-Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (6,600 units)$429,000

Variable expenses297,000

Contribution margin132,000

Fixed expenses103,500

Net operating income$28,500

If the company sells 6,500 units, its net operating income should be closest to:

$26,500

$24,000

$28,500

$27,979

2- The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease$80,100

Cosmetics Department sales commissions--Northridge Store$5,680

Corporate legal office salaries$61,900

Store manager's salary-Northridge Store$19,200

Heating-Northridge Store$13,100

Cosmetics Department cost of sales--Northridge Store$38,700

Central warehouse lease cost$8,600

Store security-Northridge Store$21,100

Cosmetics Department manager's salary--Northridge Store$4,460

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

$44,380

$48,840

$96,100

$38,700