If, at the Firm's Projected Sales Level, the Marginal Cost

question 32

Multiple Choice

If, at the firm's projected sales level, the marginal cost is $40, the average cost is $50 and the markup is 30 percent, then its selling price is

• A)$40.
• B)$50.
• C)$52.
• D)$65.

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Definitions:

Equivalent Unit

A measure used in cost accounting to express the amount of materials or labor in terms of the number of finished units they represent.

Process Costing

An accounting methodology used for homogeneous products, which calculates the cost of a product at various stages of production by spreading the total costs over the total units produced.

Work In Process

Refers to materials that have been partially completed in production but are not yet finished goods in manufacturing.

Cost Of Production Report

A document that details the total cost and production information for a particular period or batch in a manufacturing process.