A Company Has the Following Information for Its First Month

question 91

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{lr}\text { Raw materials used } & \$ 25,000 \\\text { Sales } \$ 65 \text { per unit) } & \$ 91,000 \\\text { Direct labor } & \$ 42,000 \\\text { Variable factory overhead } & \$ 17,000 \\\text { Fixed factory overhead } & \text { unknown } \\\text { Variable selling and administrative } & \$ 3,000 \\\text { Fixed selling and administrative } & \$ 5,000 \\\text { Gross profit } & \$ 30,000 \\\text { Contribution margin } & \text { unknown }\\\\\text { Ending inventories: }\\\\\text { Raw materials } & \$ 7,000 \\\text { WIP } & \text { none } \\\text { Finished goods } & 1,200 \text { units }\end{array}$ _____ units were produced during the period.

• A)0
• B)1,200
• C)2,600
• D)3,600

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Definitions:

Language

A system of communication used by a particular community or country, consisting of written, spoken, or signed words and the rules for combining them.

Economic Theory

A framework or model that attempts to explain the workings of economic systems through the analysis of various variables and their relationships.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specific price on or before a certain date.

Objectively

In a manner that is not influenced by personal feelings or biases, based on factual and unbiased considerations.