Delongis Corporation, a Merchandising Company, Reported the Following Results for June

question 200

Multiple Choice

Delongis Corporation, a merchandising company, reported the following results for June:
Cost of goods sold is a variable cost in this company.
-The contribution margin for June is:

• A) $148,800
• B) $102,200
• C) $218,600
• D) $124,800

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Definitions:

Short Run

A period in economic theory during which at least one factor of production is fixed, limiting the capacity to adjust to changes in market demand.

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in price.

Short Run

A period in economics during which the quantity of at least one input (such as plant size) is fixed and cannot be changed.

Long Run

A period in economics sufficient for all markets to adjust to equilibrium, including the adjustment of all production factors and prices of inputs.