A Business Operated at 100% of Capacity During Its First

question 142

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 would be the amount of income from operations reported on the absorption costing income statement?

• A) $50,400
• B) $70,000
• C) $52,000
• D) $68,400

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Definitions:

Finality

The quality or condition of being conclusive or definitive, bringing an end to a process or conflict.

Best Agreement

The most favorable or advantageous outcome that can be achieved through negotiation or discussion.

Negative Bargaining Range

A situation in negotiations where there is no overlap in the acceptable terms between parties, making it difficult to reach an agreement.

Concession Making

The act of yielding or conceding points in a negotiation to reach an agreement.