Romtech Company Sold 43,000 Units of Its Product at a Price

question 91

Multiple Choice

Romtech Company sold 43,000 units of its product at a price of $300 per unit.Total variable cost per unit is $175,consisting of $168 in variable production cost and $7 in variable selling and administrative cost.Compute the manufacturing margin for the company under variable costing.

• A) $5,375,000
• B) $5,676,000
• C) $12,599,000
• D) $12,900,000
• E) $7,525,000

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Definitions:

Spirogyra

A filamentous green algae characterized by its spiral chloroplast arrangements, commonly found in freshwater environments.

Conjugation

Transfer of genetic material from one cell to another.

Endosymbiotic Hypothesis

A theory that explains the origin of mitochondria and chloroplasts in cells as a result of early symbiotic relationships between separate single-celled organisms.

Mitochondria

Membrane-bound organelle in which ATP molecules are produced during the process of cellular respiration.