Paulsen Company Sells 100,000 Units for $15 a Unit

question 167

Multiple Choice

Paulsen Company sells 100,000 units for $15 a 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) $600,000.
• B) $900,000.
• C) $1,125,000.
• D) $1,150,000.

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Definitions:

Inattentional Blindness

A psychological lack of attention that is not associated with vision defects or deficits, causing individuals to fail to perceive an unexpected stimulus that is in plain sight.

Dual Processing

The principle that our mind operates on two levels simultaneously, conscious and unconscious thinking.

Selective Attention

The cognitive process by which a person focuses on one particular item or task while ignoring other stimuli.

Bluetooth Device

A technology that enables the wireless exchange of data over short distances between electronic devices, such as between phones, computers, and headphones.