A Business Operated at 100% of Capacity During Its First

question 75

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

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Definitions:

Sty

An infection of the sebaceous glands at the base of the eyelashes, resulting in a painful, red swelling on the eyelid.

Retinal Detachment

A serious eye condition in which the retina at the back of the eye pulls away from its normal position, potentially leading to blindness if not promptly treated.

Astigmatism

A common vision condition caused by an irregular curvature of the cornea or lens, leading to blurred or distorted vision.

Hyperopia

A condition that occurs when light entering the eye is focused behind the retina; commonly called farsightedness.