A Business Operated at 100% of Capacity During Its First

question 103

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?

• A)$50,000
• B)$54,000
• C)not reported
• D)$70,000

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Definitions:

Fine Particles

Very small solid or liquid particles found in the air or emissions that can pose health risks when inhaled.

Dissolved

The process by which a substance is integrated into a liquid making it part of the liquid's composition.

Over-The-Counter

Refers to medicines and products available for purchase without a prescription from a healthcare professional.

General Population

The total number of individuals or inhabitants in a specified area or community, without excluding any subgroups.