During Its Most Recent Fiscal Year, Raphael Enterprises Sold 200,000

question 98

Multiple Choice

During its most recent fiscal year, Raphael Enterprises sold 200,000 electric screwdrivers at a price of $15 each. Fixed costs amounted to $400,000 and pretax income was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

• A) $2,400,000.
• B) $2,000,000.
• C) $3,000,000.
• D) $1,600,000.
• E) $1,000,000.

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Definitions:

Unilaterally Assigned

Tasks or responsibilities given to an employee or a group by management without their input or agreement.

On-The-Job Training

On-the-job training refers to hands-on training provided to employees at the workplace while they are performing their actual job tasks, allowing them to learn by doing.

Principal Shortcoming

The main or most significant deficiency or weakness in a system, plan, or individual.

Development

A process of growth, progress, or evolution in various contexts such as technology, society, economy, or personal skills.