O'Malley Company Sells 100000 Units for $13 a Unit

question 203

Multiple Choice

O'Malley Company sells 100000 units for $13 a unit. Fixed costs are $350000 and net income is $250000. What should be reported as variable expenses in the CVP income statement?

• A) $600000.
• B) $700000.
• C) $950000.
• D) $1050000.

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Definitions:

Agency Relationship

A connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.

Rescission

The termination of a contract.

Consensual Relationship

A mutual agreement between parties or individuals without coercion or duress, often used in the context of personal or workplace relationships.

Formal Written Contract

A contract that is officially documented in written form and typically requires a certain level of formality and requirements to be legally binding.