If the Variable Cost of Goods Sold Totaled $90,000 for the Year

question 27

Multiple Choice

If the variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each) , the effect of the unit cost factor on the change in contribution margin is:

• A) $6,400 decrease
• B) $6,400 increase
• C) $7,200 increase
• D) $7,200 decrease

---

Definitions:

Comparison Universe

A benchmark or group of benchmarks that portfolios are compared against to evaluate their performance or risk characteristics.

Mutual Funds

Investment funds that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.

Astronomy

The scientific study of celestial bodies, including stars, planets, comets, and galaxies, and phenomena that originate outside the Earth's atmosphere.

Sharpe Measure

A ratio designed to measure the risk-adjusted return of an investment, comparing its excess return over the risk-free rate to its standard deviation.