Salim Sells Fax Machines That Come in Standard and Enhanced

question 103

Multiple Choice

Salim sells fax machines that come in Standard and Enhanced models. The Standard model sells for $325 and the Enhanced model sells for $385. If Salim sold a total of 35 units and took in $12,575, how many of the Enhanced model did he sell?

• A) 15
• B) 20
• C) 25
• D) 10

Understand the concept and differences between absorption costing and variable costing.

Calculate unit product costs under both absorption costing and variable costing.

Determine the net operating income (loss) under both absorption costing and variable costing.

Compute the amount of fixed manufacturing overhead released from or deferred in inventories.

---

Definitions:

Monopoly

A market structure characterized by a single seller, selling a unique product in the market.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product or service.

Sales Price

The amount of money a buyer pays to purchase a product or service.

Monopolist

A market participant that is the sole provider of a product or service, possessing significant market power to set prices.