Orchid Corp

question 64

Multiple Choice

Orchid Corp.has a selling price of $15,variable costs of $10 per unit,and fixed costs of $25,000.If Orchid sells 13,000 units,contribution margin will equal:

• A)$195,000
• B)$145,000
• C)$40,000
• D)$65,000

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Definitions:

Supplies

Items and materials used in the daily operations of a business, often consumable and regularly replaced.

Prepaid Rent

An expense recorded before it is used, representing payment for rent that covers a future period, considered an asset on the balance sheet until the period to which it applies passes.

Salaries and Wages Expense

The total expense for a company from paying salaries and wages to its employees during a financial period, reflecting the cost of labor.

Salaries and Wages Payable

Liabilities arising from employees' salaries and wages that have been earned but not yet paid.