If Variable Cost of Goods Sold Totaled $80,000 for the Year

question 54

Multiple Choice

If variable cost of goods sold totaled $80,000 for the year (16,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,250 (15,000 units at $5.75 each) ,the effect of the unit cost factor on the change in contribution margin is:

• A) $12,000 increase
• B) $5,750 decrease
• C) $12,000 decrease
• D) $5,750 increase

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Definitions:

Participant Confidence

The level of belief individuals have in their own abilities and judgments during participation in an activity or research.

Propositional Reasoning

Involves making inferences and deducing facts from propositions, or statements that declare something to be true or false.

Calibration Curve

A plot of accuracy against confidence judgments. The more the curve approaches a 45-degree line, the better the “calibration” or “fit” between accuracy and confidence.