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

question 78

Multiple Choice

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

-
Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating profit using a contribution margin income statement?

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

---

Definitions:

Environmental Costs

Expenses related to the impact of a company's operations on the environment, including costs for pollution prevention, waste management, and resources conservation.

Societal

Pertaining to or involving society or social communities, including their structures, issues, or behaviors.

Preventive

Relating to actions taken to prevent potential problems or damages before they occur.

Environmental Reporting

The process by which a company discloses information regarding its environmental impact and sustainability practices to stakeholders.