Figure 2-2

question 24

Multiple Choice

Figure 2-2.Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
In addition, direct labor costs of $30,000 were incurred, overhead equaled $42,000, materials purchased were $27,000 and selling and administrative costs were $22,000. Lonborg Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.
-Refer to Figure 2-2. What was Lonborg's operating income <loss> for the year?

• A) $18,500
• B) $125,000
• C) $<3,500>
• D) $5,500

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Definitions:

Ethnic Differences

Variations in practices, values, and physical or genetic traits among groups of people categorized based on common ancestry or culture.

IQ

Stands for Intelligence Quotient, a measure of a person's cognitive abilities in relation to their age group.

Stereotype Vulnerability

The risk of confirming negative stereotypes about one's social group, which can affect performance and outcomes.

Claude Steele

An American social psychologist known for his work on stereotype threat and its impact on the performance of individuals in various social contexts.