Data from Rannier Metals for 2014 Is as Follows The Company Produced 145,000 Units During the Year and Sold

question 59

Multiple Choice

Data from Rannier Metals for 2014 is as follows: $\begin{array}{lr}\text { Sales } & \$ 20 \text { per unit } \\\text { Variable cost of goods sold } & ? ? \\\text { Fixed manufacturing overhead } & \$ 85,000 \\\text { Variable selling \& admini strative costs } & ? ? \\\text { Fixed selling \& administrative costs } & \$ 150,000\end{array}$ The company produced 145,000 units during the year and sold 130,000 units. Variable production costs per unit and fixed costs have remained constant all year. Net income for the year was $1,000,000. How much was the company's contribution margin?

• A) $765,000
• B) $1,235,000
• C) $1,365,000
• D) Not enough information is provided to determine the answer

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Definitions:

Implicit Associations

The subconscious linking of two concepts or entities in the mind, which can influence attitudes and behavior.

Stereotype

A fixed, generalized idea or image of a particular group of people, often lacking nuance and accuracy.

Availability Heuristic

A quick thinking process where a person leans on the first examples that surface in their thoughts when considering a certain subject, notion, procedure, or judgment.

Explicit Bias

Prejudices or attitudes that an individual is consciously aware of and can report.