If Targeted Sales Volume in Units Is 62,300, Total Fixed

question 122

Multiple Choice

If targeted sales volume in units is 62,300, total fixed costs are $31,200, and contribution margin per unit is $1.20, then the targeted net income is _____.

• A)$31,200
• B)$43,560
• C)$37,440
• D)$74,760

Compute the cost of goods completed and transferred to finished goods.

Reconcile total costs to account for in process cost summaries.

Understand the conceptual foundation and importance of cost accounting systems in both manufacturing and service firms.

Recognize the difference between job order costing and other costing methods, and identify situations where job order costing is most appropriate.

---

Definitions:

Selling Price

The selling price is the amount a buyer pays to purchase a product or service from a seller.

Contribution Margin Ratio

The percentage of sales revenue remaining after variable costs are subtracted, indicating the portion contributing to covering fixed costs and generating profit.

Sales Mix

The relative proportions in which a company’s products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

Monthly Sales

The total revenue generated from sales activities during a specific month, often used as a measure of business performance.