Hawk Company Provided the Following Information Regarding Its Only Product--Skateboards

question 69

Multiple Choice

Hawk Company provided the following information regarding its only product--skateboards. $\begin{array}{lr}\text { Direct materials used } & \$ 375,000 \\\text { Direct labor } & 170,000 \\\text { Fixed overhead } & 95,000 \\\text { Variable overhead } & 20,000 \\\text { Variable selling and administrative } & 55,000 \\\\\text { Units produced and sold } & 40,000\end{array}$ The manufacturing cost per unit, if the contribution approach is used, is _____.

• A)$13.00
• B)$14.13
• C)$14.75
• D)$15.50

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking a different decision.

Attending College

The act of enrolling in and going to a college or university to pursue higher education.

Short-Run Effects

Immediate or temporary outcomes of a policy or economic change that manifest before long-term adjustments can take place.

Quantity Of Money

The total amount of money (cash, coins, and bank deposits) in circulation within an economy.