Oak N' More Corporation Sells Desks at $480 Per Desk $\begin{array}{ll}\text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$

question 113

Multiple Choice

Oak N' More Corporation sells desks at $480 per desk. The costs associated with each desk are as follows: $\begin{array}{ll}\text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$ Total fixed costs for the period are $456,840. The contribution margin per desk is:

• A) $108
• B) $195
• C) $51
• D) $126

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Definitions:

Reduced

Describes a condition where something is made smaller in size, amount, or degree.

Balance Of Payments

A record of all transactions made between one particular country and all other countries during a specified period of time.

Balance

The difference between the total credits and total debits in an account, or the stability between opposing forces.

Gold Exchange Standard

A monetary system where countries hold reserves in a currency that is convertible into gold but do not exchange currency for gold themselves; instead, the currency can be exchanged for another currency that is convertible into gold at a fixed rate.