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:

Essays

Short literary compositions on a particular theme or subject, usually in prose and generally analytic, speculative, or interpretative.

Calvinist Doctrine

A set of religious principles based on the teachings of John Calvin, emphasizing predestination, the sovereignty of God, and the necessity of grace for salvation.

Predestination

A theological doctrine that asserts all events have been willed by God, particularly regarding the salvation of some and not others.