A Business Operated at 100% of Capacity During Its First

question 51

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?

• A) $100,800
• B) $100,000
• C) $114,800
• D) $140,000

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Definitions:

Quick Decisions

Rapid choices or judgments made with minimal deliberation, often relying on intuition or instinct.

Simple Heuristics

Quick, efficient rules or mental shortcuts that help in decision-making, allowing for rapid judgments or problem-solving with minimal cognitive effort.

Evolutionary Psychologists

Scientists who study the psychological adaptations of humans to the changing physical and social environment, especially those that are shaped by natural selection.

Low Maintenance

Describing something or someone that requires minimal care, effort, or attention to maintain.