1. An income statement using the variable cost format shows the
Net income
Contribution margin
Both A and B
None of the above
2. Sales less variable costs are called the
Breakeven point
Fixed costs point
Contribution margin
None of the above
3. Montson, Inc. produces a product requiring three square feet at $6 per square foot. If the desired ending inventory is $18,000 and the beginning inventory is $36,000, how many units must Montson produce to make direct materials purchases $54,000?
A) 3,000
B) 4,000 Its either B or D
C) 1,000
D) Cannot tell from data given