Marcelin Corporation Manufactures and Sells One Product

question 15

Multiple Choice

Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.
The unit product cost under super-variable costing is:

• A) $191 per unit
• B) $233 per unit
• C) $114 per unit
• D) $92 per unit

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Definitions:

Positive Externalities

Benefits that affect uninvolved third parties resulting from an economic activity or transaction.

Location Decision

The process businesses use to determine the best geographical location for their operations, factoring in costs, accessibility, and market potential.

Market and Supply Allocation

A strategic distribution of resources and products across various markets to optimize supply chain efficiency and meet demand.

Pericardial Cavity

The pericardial cavity is the potential space between the parietal and visceral layers of the pericardium, containing a small amount of lubricating fluid to reduce friction during heart movement.