When a firm prepares financial reports by using absorption costing, a. profits will always decrease with decreases in sales. b. profits will always increase with increases in sales. c. profits may decrease with increased sales even if there is no change in selling prices and costs. d. decreased output and constant sales result in increased profits?

In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?