variable expenses as a percentage of net sales increase . variable expenses as a percentage of net sales decrease . Question 9 . Question : ( TCO C ) Which of the following would not affect the break-even point ? Student Answer : Variable expense per unit Number of units sold Total fixed expenses Selling price per unit Question 10 . Question : ( TCO D ) Under variable costing , Student Answer : inventory costs will be lower than under absorption costing . inventory costs will be higher than under absorption costing . net operating income will always be lower than under absorption costing . net operating income will always be higher than under absorption costing . Question 1 . Question : ( TCO A ) The following data ( in thousands of dollars ) have been taken from the accounting records of Larden Corporation for the just-completed year . Sales $ 950 Purchases of raw materials $ 170 Direct labor $ 225 Manufacturing overhead $ 220 Administrative expenses $ 180 Selling expenses $ 140 Raw materials inventory , beginning $ 90 Raw materials inventory , ending $ 80 Work-in-process inventory , beginning $ 30 Work-in-process inventory , ending $ 20 Finished goods inventory , beginning $ 100 Finished goods inventory , ending $ 70 Prepare a Schedule of Cost of Goods Manufactured statement in the text box below . Question 2 . Question : ( TCO B ) The Florida Company manufactures a product that goes through three processing departments . Information relating to activity in the first department during June is given below . Percentage Completed