Answer the Following Questions Using the Information Below:
Northern Star

question 151

Multiple Choice

Answer the following questions using the information below:
Northern Star sells several products. Information of average revenue and costs is as follows:
$$\begin{array} { l r } \text { Selling price per unit } & \$ 20.00 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 4.00 \\\text { Direct manufacturing labor } & \$ 1.60 \\\text { Manufacturing overhead } & \$ 0.40 \\\text { Selling costs } & \$ 2.00 \\\text { Annual fixed costs } & \$ 96,000\end{array}$$
$\text { The company sells } 12,000 \text { units at the end of the year. }$
-The contribution margin per unit is ________.

• A) $11.00
• B) $12.00
• C) $4.00
• D) $14.00

Calculate net cash provided by (used in) investing activities.

Calculate net cash provided by (used in) financing activities.

Interpret the impact of transactions on the statement of cash flows.

Determine free cash flow from given financial data.