Givenchy Company Sells 100,000 Wrenches for $12

question 50

Multiple Choice

Givenchy Company sells 100,000 wrenches for $12.00 per unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?

• A) $540,000
• B) $600,000
• C) $950,000
• D) $850,000

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Definitions:

Objective

In legal and business terms, it refers to the external, observable aspects of something as distinct from internal thoughts or feelings.

Punish

the act of imposing a penalty on someone as retribution for an offense.

Resale Agreement

An agreement between parties where the seller agrees to sell an asset or product with the understanding that the buyer intends to sell it again to a third party.

Unconscionable

A term used to describe actions or conditions that shock the conscience or are exceedingly unfair or unjust.