A Company Has the Following Information for Its First Month

question 130

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\hline \text { Raw materials used } & \$ 25,000 \\\text { Sales (\$65 per unit) } & \$ 78,000 \\\text { Directlabor } & \$ 42,000\\\text { Variable factory overhead }&\$17,000\\\text { Fixed factory overhead unknown }\\\text { Variable sellingand administrative }&\$3,000\\\text { Fixed sellingand administrative }&\$5,000\\\text { Gross profit }&\$30,000\\\text { Contributionmargin }&\text { unknown }\\\end{array}$
Ending inventories:
Raw materials $\quad$$\$ 7,000$
WIP none
Finishedgoods $\quad$$\quad$$\quad$ 1,200units The total contribution margin under variable costing is:

• A) $21,000
• B) $34,500
• C) $7,000
• D) $33,000

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Definitions:

Antitrust Violations

Antitrust Violations refer to actions or agreements by businesses that unfairly restrict competition and violate laws established to promote fair competition in the marketplace.

Sherman Act

A foundational antitrust law in the United States passed in 1890 that prohibits monopolies and any unreasonable constraints of trade.

Market Competition

The rivalry among businesses to attract customers and gain market share through price, product quality, services, and innovation.

Unfairly Restricting

refers to practices or policies that unduly limit the freedoms or opportunities of individuals or entities, often in a manner that is deemed unjust or biased.