Latinovich Company Has No Beginning and Ending Inventories,and Reports the Following

question 80

Multiple Choice

Latinovich Company has no beginning and ending inventories,and reports the following data about its only product:
$\begin{array}{ll}\text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & \$ 80,000 \\\text { Fixed indirect manufacturing } & \$ 180,000 \\\text { Fixed selling and administrative } & \$ 150,000 \\\text { Variable indirect manufacturing } & \$ 130,000 \\\text { Variable selling and administrative } & \$ 160,000 \\\text { Selling price(per unit) } & \$ 150\end{array}$
$\begin{array} { l } \text {Units produced and sold }&10,000 \\\end{array}$

Latinovich Company uses the contribution approach to prepare the income statement.What is the contribution margin?

• A) $600,000
• B) $910,000
• C) $930,000
• D) $1,090,000

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Definitions:

Surface Profile

Describes the quantifiable variation, texture, or roughness of a surface over a specified area.

Thick Line

In drafting and drawing, a thick line typically refers to lines with increased weight used to denote boundaries, important features, or objects that are in the foreground.

Symbol

A character or graphic sign used to represent an idea, object, or relationship.

Circular Runout

A geometric tolerance that controls the roundness and the coaxiality of a feature to a datum axis, ensuring even rotation.