A Factory Is Operating at Less Than 100% Capacity

question 51

Multiple Choice

A factory is operating at less than 100% capacity.Potential additional business will NOT use up the remainder of the plant capacity.Given the following list of costs, which one should be ignored in a decision to produce additional units of product?

• A)variable selling expenses
• B)fixed factory overhead
• C)direct labour
• D)contribution margin of additional units

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Definitions:

Mucus

A slippery secretion produced by mucous membranes, serving to moisten and protect them.

Ejaculation

The process of releasing semen from the penis during sexual arousal or orgasm.

Fallopian Tubes

Tubes through which eggs travel from the ovaries to the uterus in the female reproductive system.

Ejaculation

The expulsion of semen from the body during sexual arousal in males.