The DesMaris Company Had the Following Income Statement for the Month

question 36

Multiple Choice

The DesMaris Company had the following income statement for the month of November 2018: $\begin{array}{c} \text { DesMaris Company}\\ \text { Income Statement}\\ \text { For the Month of November 2018}\\ \begin{array}{llcc} \text { Sales \( (\$ 60 \times 10,000) \) } &&\$600,000\\\text { Cost of goods sold: }\\ \text { Direct material \( \mathrm{s}(\$ 12 \times 10,000) \) } &\$120,000\\ \text {Direct labor \( (\$ 9 \times 10,000) \) } &\$90,000\\ \text { Variable factory overhead \( (\$ 7.50 \times 10,000) \) } &75,000\\ \text {Fixed factory overhead } &120,000&405,000\\ \text { Gross profit } &&\$195,000\\ \text { Selling and administrative expenses: } &&\$195,000\\ \text { Variable \( (\$ 1.50 \times 10,000) \) } &\$15,000\\ \text {Fixed } & \underline{90,000}& \underline{105,000}\\ \text {Operating income } && \underline{\$90,000}\\\end{array} \end{array}$

DesMaris Company's break-even sales volume is

• A)7,000 units.
• B)20,000 units.
• C)11,211 units.
• D)10,000 units.

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Definitions:

Partnership Property

Assets or property acquired by a partnership firm, owned collectively by the partners and used for the business's purposes, subject to the partnership agreement.

RUPA

Stands for the Revised Uniform Partnership Act, which is a set of laws adopted by many states to govern the operation of partnerships.

Mentally Incompetent

A legal status indicating that an individual is not capable of making decisions for themselves due to mental incapacity or illness.

Breach of Contract

The failure to perform as specified in a contract without a legitimate legal excuse.