A Business Operated at 100% of Capacity During Its First

question 94

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: ​
If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month,what is the amount of the manufacturing margin that would be reported on the variable costing income statement?

• A) $104,000
• B) $106,000
• C) $140,000
• D) not reported

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Definitions:

Activation Energy

The minimum amount of energy required to initiate a chemical reaction, effectively determining the rate at which the reaction will occur.

Enzyme

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions within cells.

Catalyzes

To increase the rate of a chemical reaction without undergoing any permanent chemical change, often pertaining to the action of enzymes.

Cofactor

A non-protein chemical compound or metallic ion that is required for a protein's biological activity to occur.