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Pluto Company Sells a Product for $80 Per Unit

question 138

Essay

Pluto Company sells a product for $80 per unit. Variable costs are $25 per unit and fixed costs are $4,000 per month. Pluto sold 2,000 units in October, 2014. Prepare an income statement for October using the contribution margin format.


Definitions:

Labour Force

The total number of people employed or seeking employment in a given area or economy.

Expectancy Theory

A psychological theory about motivation predicting that an individual's motivational force is a result of expectancy, instrumentality, and valence.

High Instrumentality

The belief or expectation that high performance will lead to desirable outcomes.

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources, emphasizing transparency, and consistency in the procedures.

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