A Business Operated at 100% of Capacity During Its First

question 19

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 contribution margin that would be reported on the variable costing income statement is

• A)$51,400
• B)$52,000
• C)$54,000
• D)$53,000

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Definitions:

Output

The quantity of goods or services produced in a given time period.

Cartels

Formal agreements among competing firms in the same industry aimed at controlling production, fixing prices, and restricting competition.

Production

The procedure involved in producing goods and services.

Federal Budget Deficit

The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or use of reserves.