The Following Information Relates to Myer, Inc How Much Were Myer's Product Costs?
A) $604,650
B) $252,000

question 128

Multiple Choice

The following information relates to Myer, Inc.: $$\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 10,600 \\\hline \text { Sales Salary } & 10,000 \\\hline \text { Sales Revenue } & 500,000 \\\hline \text { President's Salary } & 230,000 \\\hline \text { Office Rent } & 60,500 \\\hline \text { Manufacturing Equipment Depreciation } & 1200 \\\hline \text { Indirect Materials Used } & 800 \\\hline \text { Indirect Labor } & 13,000 \\\hline \text { Factory Repair and Maintenance } & 920 \\\hline \text { Direct Materials Used } & 27,500 \\\hline \text { Direct Labor } & 36,000 \\\hline \text { Delivery Vehicle Depreciation } & 1550 \\\hline \text { Administrative Salaries } & 22,000 \\\hline\end{array}$$ How much were Myer's product costs?

• A) $604,650
• B) $252,000
• C) $510,600
• D) $86,620

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Definitions:

Japanese Firms

Companies based in Japan, often characterized by unique business practices such as lifetime employment and strong government-industry cooperation.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Marginal Costs

The supplementary expense incurred from making one more unit of a product or service.

Fixed Costs

Costs that do not vary with the level of output in the short term, such as rent, salaries, and loan payments.