O'Malley Company Sells 100000 Units for $13 a Unit

question 203

Multiple Choice

O'Malley Company sells 100000 units for $13 a unit. Fixed costs are $350000 and net income is $250000. What should be reported as variable expenses in the CVP income statement?

• A) $600000.
• B) $700000.
• C) $950000.
• D) $1050000.

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Definitions:

Selling And Administrative Expenses

Costs related to selling products and managing the business, not directly tied to production.

Budgeting

The process of creating a financial plan or forecast for a specific period, detailing expected revenues and expenditures.

Employee Salaries

Fixed payments made to employees for their services over a specified period, typically monthly or bi-monthly.

Budgeting

The process of creating a financial plan to manage revenue and expenses for a specific period, often key to strategic planning in businesses and personal finance management.