A Business Operated at 100% of Capacity During Its First

question 8

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?

• A) $100,800
• B) $100,000
• C) $114,800
• D) $140,000

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Definitions:

Growth Needs

Psychological requirements for personal development and self-actualization.

Being Needs

Fundamental aspects of human motivation related to growth, fulfillment, and realization of one’s potential, beyond just survival needs.

Deficit Needs

Refer to the basic requirements that humans must meet to live and function, such as safety, love, and esteem, originating from Maslow's hierarchy of needs.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious processes influencing behavior.