(Appendix 6A) Labadie Corporation Manufactures and Sells One Product

question 45

Multiple Choice

(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
-The unit product cost under super-variable costing is:

• A) $117 per unit
• B) $215 per unit
• C) $94 per unit
• D) $181 per unit

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Definitions:

Teff

A grain native to Ethiopia and Eritrea, known for its nutritional properties and used to make traditional dishes like injera.

Newsprint

A low-cost, non-archival paper commonly used for newspapers and other publications.

Supply

The total amount of a specific good or service that is available to consumers, usually determined by price, production costs, and market demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price.