New Look Company, Which Has Only One Product, Has Provided

question 115

Multiple Choice

New Look Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 95 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 3,800 \\\hline \text { Units sold } & 3,600 \\\hline \text { Units in ending inventory } & 200 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 22 \\\hline \text { Direct labour } & \$ 11 \\\hline \text { Variable manufacturing overhead } & \$ 2 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 102,600 \\\hline \text { Fixed selling and administrative } & \$ 63,200 \\\hline\end{array}$



-What was the total gross margin for the month under the absorption costing approach?

• A) $90,000.
• B) $95,200.
• C) $118,800.
• D) $156,400.

---

Definitions:

Secure Digital Transactions

Electronic payment processes that utilize encryption and security protocols to ensure the safe transfer of financial data over the internet.

Nonfinancial Businesses

Nonfinancial businesses are companies that primarily focus on producing goods and providing services unrelated to the financial services sector.

Real Asset(s)

Physical or tangible assets that have intrinsic value due to their substance and properties, such as real estate, commodities, and natural resources.

Primary Market

The financial market for new securities issues, where corporations sell new stocks and bonds directly to investors.