If Variable Selling and Administrative Expenses Totaled $120,000 for the Year

question 44

Multiple Choice

If variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) ,the effect of the unit cost factor on the change in contribution margin is:

• A) $19,500 decrease
• B) $19,500 increase
• C) $20,000 decrease
• D) $20,000 increase

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Definitions:

Army Alpha

A group-administered intelligence test developed for the U.S. Army during World War I to assess recruit literacy and mental ability.

Army Beta

A nonverbal intelligence test developed for illiterate, non-English speaking, or verbally handicapped recruits in the U.S. Army.

World War I

A global conflict that took place primarily in Europe from 1914 to 1918, involving many of the world's great powers.

Data Collection

is the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.