A Business Operated at 100% of Capacity During Its First

question 112

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:

Psychiatric Unit

A designated area within a hospital or standalone facility that provides care and treatment for people with mental health conditions.

Detoxification Unit

A specialized facility or area in a hospital where patients undergo detoxification, especially from alcohol or drug addiction, in a controlled and medically supervised environment.

Alcohol Abuse

The excessive or inappropriate consumption of alcohol, which can lead to serious physical and mental health issues.

Withdrawal Symptoms

Physical or psychological effects that occur after stopping or reducing intake of a substance that the body has become dependent on.