Preston Racquets Manufactures Tennis Racquets

question 29

Multiple Choice

Preston Racquets manufactures tennis racquets. The following data are available for last month.

-Using variable costing, what is the contribution margin at Preston Racquets for last month?

• A) $200,000
• B) $110,000
• C) $320,000
• D) $80,000

---

Definitions:

Natural Rate

The level of economic output at which the rate of inflation is stable, often related to the concept of the natural rate of unemployment where the labor market is in equilibrium.

Consumer Price Index

A metric that analyzes the weighted average cost of a selection of consumer goods and services, such as medical care, transportation, and food, to measure inflation.

Short-Run Aggregate Supply

Represents the total supply of goods and services that firms in an economy plan on selling during a short-term period, given the level of prices.

Long-Run Aggregate Supply

Represents the total output an economy can produce when both capital and labor are fully employed, assuming constant technology and resources.