Last Month, Brand Products Manufactured 25,000 Calculators and Sold 23,000

question 36

Multiple Choice

Last month, Brand Products manufactured 25,000 calculators and sold 23,000 of these calculators at a price of $10.00 each.Manufacturing costs consisted of direct labor, $30,000; direct materials, $32,000; variable manufacturing overhead, $3,500; fixed manufacturing overhead, $21,500.Selling and administrative costs are all fixed and totaled $24,000.Beginning inventory consists of no units.Brand Products uses full costing.How much will the company's gross margin increase if sales increase 10%?

• A)Less than 10%
• B)More than 10%
• C)10%
• D)It depends on other factors not given.

---

Definitions:

Close Running

Fit type characterized by a small but non-restrictive clearance that allows components to move together smoothly without excessive play or looseness.

Grades

Levels of quality or size in a uniform set of specifications, or levels of academic achievement in educational contexts.

Ø30 f7 Fit

A specification for a cylindrical fit where Ø30 defines the nominal diameter in millimeters and f7 specifies the tolerance class for a hole.

High Precision Fit

Refers to a high degree of accuracy in the mating of two machine parts, ensuring minimal play or clearance between them.