A Business Operated at 100% of Capacity During Its First

question 10

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 would be the amount of income from operations reported on the variable costing income statement?

• A) $100,800
• B) $100,000
• C) $114,800
• D) $140,000

---

Definitions:

Discrete

Relating to data or variables that represent distinct values, often countable and not continuous.

True (On) Or False (Off)

This refers to binary states in digital systems, with "True (On)" indicating an active or high state and "False (Off)" indicating an inactive or low state.

Redundant PLC System

A PLC setup where multiple processors or systems are used in parallel to ensure continued operation in case one fails.

Two Processors

A system configuration that involves two central processing units (CPUs) working together, often to increase performance or provide redundancy.