A Business Operated at 100% of Capacity During Its First

question 140

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) $114,800

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Definitions:

Electrical Interference

Disturbances in electrical circuits that can degrade the performance of devices or systems, often caused by external sources of electromagnetic waves.

Microwave

A type of electromagnetic radiation with wavelengths ranging from one meter to one millimeter; also refers to a kitchen appliance that uses microwaves to cook or heat food.

Radio

A technology that uses radio waves to transmit information, such as sound, by modulation.

Satellite

An artificial object placed into orbit around the Earth or another body in space for the purpose of communication, navigation, or observation.