A Business Operated at 100% of Capacity During Its First

question 76

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs:
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?

• A) $50,000
• B) $54,000
• C) not reported
• D) $70,000

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Definitions:

Stadium Management

The administration and operation of a stadium, including event scheduling, maintenance, and security.

MR=MC

The condition where marginal revenue equals marginal cost, often used as the profit-maximizing point in economic analysis of firms.

Single Product

A business model focusing on the production or sale of one specific item or service.

Multiple Product

The offering or production of more than one type of product by a company.