Answer the Following Question(s)using the Information Below

question 9

Multiple Choice

Answer the following question(s) using the information below.Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit.In the first month of operation, 2,000 units were produced and 1,750 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:

-What is contribution margin using variable costing?

• A)$96,250
• B)$91,000
• C)$84,000
• D)$78,750
• E)$52,500

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Definitions:

Inventory Levels

The quantity of products or materials a company has in stock at any given time.

Physical Inventory

The process of counting by hand all physical inventory items in a business at a specific point in time, to ensure accuracy of accounting records.

LIFO

"Last In, First Out," an inventory valuation method where the last items purchased are the first ones sold.

Inventory Profits

The increase in inventory value above its cost, typically due to price increases or valuation adjustments.