A Business Operated at 100% of Capacity During Its First

question 94

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is

• A)$50,000
• B)$54,000
• C)not reported
• D)$70,000

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Definitions:

Homeostatic

Pertaining to homeostasis, the process by which a steady state of internal conditions is maintained in a living organism despite external changes.

Tension

Tension refers to a state of mental or emotional strain or stress that arises from demanding circumstances.

Primary Drives

Basic, biological urges or needs, such as hunger and thirst, that motivate behavior.

Salmon

A species of fish that is known for its remarkable lifecycle, which includes freshwater birth, oceanic life, and returning to fresh water to spawn.