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

question 25

Multiple Choice

Jarvix Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 111 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,800 \\\hline \text { Units sold } & 8,900 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 34 \\\hline \text { Direct labour } & \$ 37 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } &\\\hline \text { Fixed manufacturing overhead } & \$ 61,600 \\\hline \text { Fixed selling and administrative } & \$ 169,100 \\\hline\end{array}$ The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.


-What was the unit product cost for the month under absorption costing?

• A) $74.
• B) $81.
• C) $83.
• D) $90.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Increase

A rise in the quantity, size, number, or degree of something.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing and able to purchase at any given price.

Expectations

The anticipations of consumers, firms, and others about future economic conditions, which can influence their decisions today.