Big Blue Bubble Company Produces a Product with the Following $\begin{array}{lr}\text { Direct materials } & \$ 15 \\\text { Direct labour } & 10 \\\text { Overhead } & 15\end{array}$

question 109

Multiple Choice

Big Blue Bubble Company produces a product with the following per-unit costs:
Last year, Gateway produced and sold 750 units at a sales price of $80 each. Total selling and administrative expense was $25,000.
$\begin{array}{lr}\text { Direct materials } & \$ 15 \\\text { Direct labour } & 10 \\\text { Overhead } & 15\end{array}$
-Refer to the Figure.What was the total operating income last year?

• A)$3,500
• B)$25,500
• C)$29,000
• D)$51,000

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Definitions:

Occupational Safety And Health Administration

A federal agency under the United States Department of Labor that ensures safe and healthful working conditions for workers by setting and enforcing standards.

Occupational Injury

Refers to any injury that occurs as a result of work-related activities, covered under workers' compensation laws.

Work-Related Diseases

Illnesses contracted as a direct result of an individual's employment, typically through exposure to chemicals, processes, or environments that are hazardous.

State Workers' Compensation Laws

The regulations established by individual states in the United States to provide benefits to employees who are injured or become ill as a direct result of their job.