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:

Can Occur

Indicates the possibility or likelihood that an event or condition may happen.

Event

An occurrence or outcome in a probabilistic context, which can be one or more results of an experiment or random process.

Outcomes

The possible results or consequences that may stem from a specific action, event, or decision.

Likelihood

A measure of how probable a particular set of observations is given a specific model or parameter value, often used in statistical inference.