The Fixed Expenses of Greg's Snowboards Are $800,000

question 156

Multiple Choice

The fixed expenses of Greg's Snowboards are $800,000.The selling price for one snowboard is $150.The variable cost per unit is $68.If the company sells 9,300 snowboards,its operating income is a

• A)gain of $1,227,400.
• B)loss of $167,600.
• C)loss of $37,400.
• D)gain of $1,562,600.

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Definitions:

System Inputs

The necessary resources, data, or materials required by a system to produce outputs.

TQM

Total Quality Management, a management approach focused on continuous improvement of all organizational processes, products, and services.

Tally Defects

The process of counting and recording flaws or errors in a product or process to analyze and improve quality control.

Manufacturing Process

Involves the steps, operations, and methodologies used to transform raw materials into finished goods or products.