Richardson Company The Following Information Is Available for Richardson Company for Its

question 196

Multiple Choice

Richardson Company
The following information is available for Richardson Company for its first year of operations:

• A)$30,000
• B)$62,500
• C)$6,000
• D)can't be determined from the information given

Sales in units	5,000
Production in units	8,000
Manufacturing costs:
Direct labor	$3 per unit
Direct material	$5 per unit
Variable overhead	$1 per unit
Fixed overhead	$100,000
Net income (absorption method)	$30,000
Sales price per unit	$40

Refer to Richardson Company.What was the total amount of Selling,General and Administrative expense incurred by Richardson Company?

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Definitions:

Relationship Marketing

The philosophy of business that concentrates on establishing a long-term buyer-seller relationship for the benefit of both parties.

Marketing Concept

A philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

Sales Forecast

An estimate of the amount of goods or services a company expects to sell over a certain period.

Target Markets

Specific groups of consumers identified as the intended recipients of a marketing strategy or campaign.