The Sandoval Company Has Four Process Engineers That Are Each

question 127

Multiple Choice

The Sandoval Company has four process engineers that are each able to process 1,500 design changes. Last year 5,250 design changes were produced by the four engineers. Each engineer is paid $60,000 per year. What is the unused capacity in dollars?

• A)$60,000
• B)$30,000
• C)$240,000
• D)$15,000

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Definitions:

Accounts Payable-HST

Liabilities owed by a business for goods and services that have been received but not yet paid for, specifically relating to Harmonized Sales Tax (HST) payables.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, ending with net income or loss.

Administrative Expense

Expenses related to the general operation of a business, such as office salaries and utilities, not directly tied to production.

Selling Expense

Costs incurred directly from selling goods or services, including advertising, sales commissions, and store maintenance.