Swisher, Incorporated Reports the Following Annual Cost Data for Its

question 62

Multiple Choice

Swisher, Incorporated reports the following annual cost data for its single product: $\begin{array}{ll}\text { Normal production level } & 30,000 \text { units } \\\text { Direct materials } & \$ 6.40 \text { per unit } \\\text { Direct labor } & \$ 3.93 \text { per unit } \\\text { Variable overhead } & \$ 5.80 \text { per unit } \\\text { Fixed overhead } & \$ 150,000 \text { in total }\end{array}$ This product is normally sold for $48 per unit.If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing?

• A)$60,000 decrease.
• B)$90,000 decrease.
• C)There is no change in gross margin.
• D)$90,000 increase.
• E)$60,000 increase.

Understand the application of information technology in reducing mental demands and errors in the workplace.

Identify ergonomic challenges and solutions for using technology devices in professional settings.

Describe principles and strategies for effective job design and its impact on teamwork, employee empowerment, and compliance with health and safety standards.

Understand the obligations of employers under the Occupational Safety and Health Act.

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Definitions:

Progressive

A system or policy where the level of contribution or effort increases with some measure of capacity, such as a progressive tax system where higher income earns pay a higher rate.

Proportional

Relating to or denoting a relationship where elements vary together at a constant rate and a change in one element results in a corresponding change in another.

Regressive

A term describing a tax system where the tax rate decreases as the taxable amount increases, placing a greater relative burden on lower income earners.

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, previously used to report income to the IRS.