Answer the Following Question(s)using the Information Below

question 41

Multiple Choice

Answer the following question(s) using the information below.Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit.In the first month of operation, 2,000 units were produced and 1,750 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:

-What is cost of goods sold per unit using variable costing?

• A)$45
• B)$30
• C)$27
• D)$23
• E)$20

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Definitions:

Horizontal Analysis

Horizontal analysis is a financial analysis tool used to compare financial data, such as revenues or balance sheet numbers, over multiple periods to identify trends and growth patterns.

Income Statements

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Accounts Credited

Accounts that have been increased in a double-entry bookkeeping system due to the recording of revenues, gains, liabilities, or owner's equity.

Accounts Debited

Refers to the entries made on the left side of an account, signifying an increase in assets or expenses or a decrease in liabilities, equity, or revenue.