Full Serve Company Makes and Sells Power Tools

question 86

Multiple Choice

Full Serve Company makes and sells power tools.The budgeted sales are $460,000, the budgeted variable costs are $160,000, and the budgeted fixed cost is $240,000.What is the budgeted contribution margin?

• A) $190,000
• B) $200,000
• C) $136,000
• D) $300,000
• E) $273,000

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Definitions:

Wage Rate

The amount of compensation workers receive for their labor per unit of time, which can be hourly, daily, or annually basis.

Efficiency Wage

Wage that a firm will pay to an employee as an incentive not to shirk.

Shirking

The behavior of employees reducing their effort or productivity, especially when their work effort is unmonitored or difficult to measure.

Unemployment

The situation in which individuals who are capable of working and are actively seeking employment are unable to find a job.