Reference: 19_05
Red and White Company Reported the Following Monthly

question 88

Multiple Choice

Reference: 19_05
Red and White Company reported the following monthly data:
$\begin{array}{ll}\text { Units produced } & 2,000 \text { units } \\\text { Sales price } & \$ 25 \text { per unit } \\\text { Direct materials } & \$ 1 \text { per unit } \\\text { Direct labor } & \$ 2 \text { per unit } \\\text { Variable overhead } & \$ 3 \text { per unit } \\\text { Fixed overhead } & \$ 8,000 \text { in total }\end{array}$

-What is the Red and White's contribution margin for this month if 980 units were sold?

• A) $38,000
• B) $18,620
• C) $24,500
• D) $50,000
• E) $21,560

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Definitions:

Unfunded Mandates

Legal requirements or conditions for federal programs that are imposed by Congress on state and local governments without providing federal funding to cover the costs.

Home Rule

Home rule refers to the power granted to political subdivisions by the state to govern themselves with minimal state interference.

Unfunded Mandate

A regulation or policy imposed by a higher authority (such as the federal government) on lower government levels or the private sector, without providing corresponding funds for implementation.

Grant-in-Aid

Financial assistance given by one level of government to another, often from the federal government to state or local governments, for a specific purpose.