Answer the Following Questions Using the Information Below:
Healesville Animates

question 38

Multiple Choice

Answer the following questions using the information below:
Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
$\begin{array}{ll}\text { Variable manufacturing costs } & \$ 19 \text { per unit } \\\text { Variable marketing costs } & \$ 1 \text { per unit } \\\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \\\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \\\text { Ending inventories: } &\\text { Direct materials } & -0- \\\text { WIP } & -0- \\\text { Finished goods } & 750 \text { units }\end{array}$
-What is operating profit when using absorption costing?

• A)($11 750)
• B)$16 500
• C)$18 750
• D)$4000

Grasp the conditions under which an offer can terminate.

Distinguish between valid and defective acceptances.

Recognize the differences and importance of intent and terms in contract formation.

Analyze the specifics of offer, acceptance, and agreement in a variety of contract contexts.

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Definitions:

Total Costs

The sum of all costs associated with the production or acquisition of goods and services, including variable and fixed costs.

Sales Line

A term used to refer to the product line or range of products that generate sales revenue for a business.

Sales Mix

This refers to the composition of different products or services sold by a company, impacting the overall profitability.

Bins

Storage containers or spaces used to organize and hold items, often within a warehouse or for inventory management.