Campus Apparels Is a Clothing Maker

question 137

Multiple Choice

Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT121, are as follows:

What are the period costs per unit associated with Product DCT121?

• A) $33
• B) $17
• C) $30
• D) $100

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Definitions:

Net Operating Income

The profit generated from a business's operations after subtracting operating expenses, but before interest and taxes.

Degree Of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to a change in its sales volume.

Variable Expenses

Expenses that change in proportion to the activity of a business, such as raw material costs or sales commissions.

Fixed Expenses

Expenses that remain constant regardless of production or sales volume, including rent, insurance, and salaries.