Use the Information Below to Answer the Following Question(s)

question 207

Multiple Choice

Use the information below to answer the following question(s) .
The following selected data relates to Lazarus Corporation:

-If sales revenue per unit increases to $27 and 8,000 units are sold, what is the contribution margin at the Lazarus Corporation?

• A) $50,000
• B) $72,000
• C) $56,000
• D) $360,000

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Definitions:

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average of all units available for sale.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into an amount of fully completed units.

Conversion Activity

The process of transforming raw materials or components into finished goods or services.

Cost Per Equivalent Unit

The calculation used in process costing to allocate costs to partially completed units, giving them the same treatment as fully completed units.