If the Variable Selling and Administrative Expenses Totaled $120,000 for the Year

question 130

Multiple Choice

If the variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) , the effect of the unit cost factor on the change in contribution margin is:

• A) $19,500 decrease
• B) $19,500 increase
• C) $20,000 decrease
• D) $20,000 increase

Compute the impact of land sales among consolidated entities and its effect on financial statements.

Calculate adjustments for inventory transactions between parent and subsidiary and their impact on consolidated financial statements.

Understand the amortization of intangible assets with definite useful lives and impairment testing.

Calculate goodwill from a business combination and assess its impairment.

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