A Company Has the Following Information for the Current Month

question 49

Multiple Choice

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

$\begin{array}{lll}\text { Inventories: } & \text { Beginning } & \text { Ending } \\\text { Raw materials } & 0 & \$ 10,500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200 \text { units }\end{array}$ were produced during the period.

• A) 2,400 units
• B) 1,200 units
• C) 0 units
• D) 3.600 units

Analyze how monopolists adjust output and pricing in response to marginal costs and marginal revenue.

Understand the role of barriers to entry in maintaining long-term monopoly profits.

Comprehend the concepts of profit maximization and loss minimization for monopolists in both the short run and the long run.

Describe the economic effects of monopolies on efficiency and market outcomes.

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Definitions:

Disappearing Forests

Disappearing forests refer to the loss of forested areas around the globe due to deforestation, logging, and land conversion, posing major concerns for biodiversity, climate, and indigenous communities.

Biodiversity Data

Information related to the variety and variability of life forms, including species diversity, ecosystem diversity, and genetic diversity.

Ecoregions

Specific geographic areas that contain distinct collections of natural communities and species, with similar environmental conditions.

Global Consequences

The extensive effects or outcomes of actions or phenomena that impact the entire world or have worldwide implications.