A Company Has the Following Information for the Month of Operations

question 109

Multiple Choice

A company has the following information for the month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 37,500 \\\text { Sales }(\$ 97.50 \text { p er unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable s elling and administrative } & \$ 4,500 \\\text { Fixed selling and adminis trative } & \$ 7,500 \\\text { Gross profit } & \$ 45,000 \\\text { Contribution margin } & \text { unknown }\end{array}$

$\begin{array}{lll}\text { Inventories: } & \text { Beginning } & \text { Ending } \\\text { Raw materials } & 0 & \$ 10500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200 \text { units }\end{array}$ Raw materials purchased during the current period are:

• A) $27,000
• B) $48,000
• C) $37,500
• D) None of these answers is correct.

Understand the role of advertising mediums and their advantages.

Recognize the importance of product positioning in marketing.

Identify the tools and methods used in sales promotion.

Understand the significance of personal selling in marketing complex products.

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