Peaceman Company, Which Has Only One Product, Has Provided the Following

question 7

Multiple Choice

Peaceman Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 117 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 4,700 \\\hline \text { Units sold } & 4,400 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 36 \\\hline \text { Direct labour } & \$ 38 \\\hline \text { Variable manufacturing overhead } & \$ 4 \\\hline \text { Variable selling and administrative } & \$ 11 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 89,300 \\\hline \text { Fixed selling and administrative } & \$ 26,400 \\\hline\end{array}$

-What was the total contribution margin for the month?

• A) $39,600.
• B) $88,000.
• C) $123,200.
• D) $171,600.

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Definitions:

Bottom Line

Refers to the net income of a company, indicating its profitability, or alternatively, the most important or fundamental aspect of a situation.

Ethical Turmoil

A state of confusion or disorder caused by complex ethical decisions or dilemmas, often leading to moral distress.

Corporate Responsibility

Corporate responsibility refers to a business's commitment to act ethically and contribute positively to societal and environmental well-being beyond mere profit generation.

Archie B. Carroll

A scholar notable for his contributions to corporate social responsibility, especially his pyramid model outlining the responsibilities of businesses.