During July, Its First Period of Operations, Aju Inc $\mathrm{W} 960,000,000$

question 77

Multiple Choice

During July, its first period of operations, Aju inc. sold ordinary shares for $\mathrm{W} 960,000,000$ , earned net income of $W 110,000,000$ , and paid dividends of $W 27,000,000$ . Retained earnings at the end of July is

• A) W1,070,000,000
• B) W1,043,000,000
• C) W933,000,000
• D) W83,000,000

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Definitions:

Selling Price

The amount for which a product is sold, determined by considering costs, market demand, competition, and other factors.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid for management decisions.

Contribution Margin

The portion of sales revenue that exceeds variable costs, serving to cover fixed expenses and contribute to profits.

Fixed Manufacturing Cost

Involves the expenses that do not fluctuate with the level of production, such as rent for factory premises, salaries of permanent employees, and depreciation of factory equipment.