Paris Plastics Has Monthly Fixed Costs of $90,000,while Its Variable

question 50

Multiple Choice

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the total sales revenue will be:

• A)$192,000.
• B)$144,000.
• C)$ 90,000.
• D)$ 54,000.

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Definitions:

Equivalent Units

A concept in cost accounting to express the amount of work done on partially finished goods in terms of fully finished units.

Direct Materials

Raw materials that are directly attributable to the production of goods, forming an integral part of the finished product.

Conversion Costs

The costs incurred to convert raw materials into finished goods, comprising both direct labor costs and manufacturing overhead.

Conversion Costs

Expenses for labor and overhead that transform raw materials into finished goods.