Figure 2-8

question 97

Multiple Choice

Figure 2-8.Last year Quest Company incurred the following costs:
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
-Refer to Figure 2-8. Total period expense was?

• A) $24,000
• B) $190,000
• C) $46,000
• D) $250,000

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Definitions:

Inputs

The resources, materials, or information that are required to produce goods or services in a business or manufacturing process.

Break-Even Point

The point at which total cost and total revenue are equal, meaning there is no net loss or gain, and the business starts to generate profit beyond this point.

Net Margin

A financial metric that measures the percentage of net income to revenue, indicating the profitability of a company after all expenses.

ISO Certification

A seal of approval from a third party body that a company runs to one of the international standards developed and published by the International Organization for Standardization.