If Variable Selling and Administrative Expenses Totaled $120,000 for the Year

question 99

Multiple Choice

If variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) , the effect of the unit cost factor on the change in variable selling and administrative expenses is:

• A) $19,500 decrease
• B) $19,500 increase
• C) $20,000 decrease
• D) $20,000 increase

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Definitions:

Fraternal Twins

Siblings born at the same time as a result of two different eggs fertilized by two different sperm, sharing 50% of their genes, similar to ordinary siblings.

Identical Twins

Twins that originate from a single fertilized egg that splits and develops into two genetically identical individuals.

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily responses occur simultaneously rather than one causing the other.

James-Lange Theory

An idea that proposes emotions are the outcome of bodily reactions triggered by events.