Arianell,Inc Calculate the Gross Profit for August Using Absorption Costing

question 103

Multiple Choice

Arianell,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 800,000 \\\hline \text { Variable Cost of Goods Sold } & 110,000 \\\hline \text { Fixed Cost of Goods Sold } & 45,000 \\\hline \text { Variable Selling and Administrative Costs } & 100,000 \\\hline \text { Fixed Selling and Administrative Costs } & 70,000 \\\hline\end{array}$$ Calculate the gross profit for August using absorption costing.

• A)$730,000
• B)$700,000
• C)$690,000
• D)$645,000

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