A Company Has the Following Information for the Current Month

question 166

Multiple Choice

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

$\begin{array}{lll}\text { Inventories: } & \text { Beginning } & \text { Ending } \\\text { Raw materials } & 0 & \$ 10,500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200 \text { units }\end{array}$ The total contribution margin under variable costing is:

• A) $10,500
• B) $31,500
• C) $49,500
• D) $54,000

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Definitions:

Legal Realists

A group of scholars who argue that law is not a set of abstract rules but is influenced by social and political factors.

Law in Action

A principle focusing on how laws are applied and enforced in real life, as opposed to theoretical or doctrinal interpretations.

Public Officials

Individuals holding positions of authority in governmental organizations, responsible for implementing public policy, making decisions, or overseeing public resources.

Bicameral Legislature

A legislative body made up of two branches or chambers, like the House of Representatives and the Senate in the U.S. Congress.