Iowa Company Reported the Following Information About the Production and Sales

question 136

Multiple Choice

Iowa Company reported the following information about the production and sales of its only product during its first month of operations: $\begin{array}{lr}\text { Sales } \$ 225 \text { per unit) } & \$ 360,000 \\\text { Direct materi als used } & \$ 176,000 \\\text { Direct labor } & \$ 100,000 \\\text { Variable factory overhead } & \$ 44,000 \\\text { Fixed factory overhead } & \$ 80,000 \\\text { Variable selling and administrative expenses } & \$ 20,000 \\\text { Fixed selling and administrative expenses } & \$ 10,000\\\\\text { Ending inventories: }\\\\\text { Direct materials } & -0- \\\text { WIP } & -0- \\\text { Finished goods } & 400 \text { units }\end{array}$ The contribution margin under variable costing is_____.

• A)$20,000
• B)$84,000
• C)$104,000
• D)$40,000

---

Definitions:

Share Of Profits

The portion of a company's earnings allocated to each share of common stock, indicating the financial benefit for shareholders.

Coalition Building

The process of bringing together diverse groups or individuals with a common interest to form a coalition or alliance to achieve shared objectives.

Opponents

Individuals, groups, or entities that are on opposing sides in a competition, conflict, or negotiation.

Conflicting Goals

Divergent objectives between parties that can complicate or hinder the achievement of a common agreement.