A Business Operated at 100% of Capacity During Its First

question 17

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement?

• A)$104,000
• B)$106,000
• C)$140,000
• D)not reported

---

Definitions:

Utilitarianism

A moral philosophy that advocates for actions that maximize happiness and well-being for the majority.

Rawls

A philosopher best known for his theory of justice as fairness, which emphasizes principles of equality and liberty in organizing society.

Kant

Refers to Immanuel Kant, an 18th-century German philosopher known for his work in epistemology, ethics, and metaphysics, emphasizing duty, moral law, and the categorical imperative.

Mill

Refers to John Stuart Mill, a British philosopher and economist best known for his contributions to the philosophy of Utilitarianism and liberty.