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

question 141

Multiple Choice

Chown Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 110 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,000 \\\hline \text { Units sold } & 7,800 \\\hline \text { Units in ending inventory } & 200 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 22 \\\hline \text { Direct labour } & \$ 31 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 4 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 248,000 \\\hline \text { Fixed selling and administrative } & \$ 140,400 \\\hline\end{array}$

-What was the total contribution margin for the month under the variable costing approach?

• A) $142,000.
• B) $179,400.
• C) $390,000.
• D) $421,200.

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Definitions:

Reliability

The consistency and dependability of a measurement, test, or instrument over time or across different conditions or observers.

External Validity

The degree to which an experimental design actually reflects the real-world issues it is supposed to address.

Experimental Design

A research method for testing hypotheses by systematically manipulating variables to observe the effect on some behavior or mental process.

Real-world Issues

Practical problems or challenges that occur in everyday life, outside of controlled experimental settings.