Vegas Company Has the Following Unit Costs -
Vegas Produced and Sold 10,000 Units

question 44

Multiple Choice

Vegas Company has the following unit costs:
$\begin{array}{llr} \text { Variable manufacturing overhead } &\$25\\ \text { Direct materials } &20\\ \text { Direct labor} &19\\ \text { Fixed manufacturing overhead} &12\\\text { Fixed marketing and administrative }&7\end{array}$

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Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?

• A) $170,000
• B) $240,000
• C) $290,000
• D) $360,000

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Definitions:

Wishful Thinking

The formation of beliefs or making decisions based on what is pleasing to imagine rather than on evidence, rationality, or reality.

Action System

A structured set of activities designed to achieve specific goals or outcomes.

Planned Change Process

A deliberate effort to improve a current situation by implementing new strategies or procedures.

Representing

The act of serving as an agent or delegate for another person or a group, particularly in legal, political, or advocacy contexts.