If Variable Cost of Goods Sold Totaled $90,000 for the Year

question 92

Multiple Choice

If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each) ,the effect of the unit cost factor on the change in contribution margin is:

• A) $6,400 decrease
• B) $6,400 increase
• C) $7,200 increase
• D) $7,200 decrease

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Definitions:

Diet

The sum of food and drink that an individual habitually consumes, which can significantly impact health and well-being.

Wrinkling

The formation of creases, folds, or ridges on the skin, typically as a result of aging, skin damage, or dehydration.

Automatic

Operations or processes that require minimal conscious thought and effort, often due to learning or repetition.

Health Consequences

The outcome or impacts on a person's physical well-being resulting from certain behaviors, lifestyle choices, or environmental exposures.