A Business Operated at 100% of Capacity During Its First

question 133

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