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

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Definitions:

Hypnotism

An absorbed state characterized by focused awareness and heightened openness to suggestion, commonly utilized for healing purposes.

Psychogenic

Originating in the mind or caused by psychological factors.

Abnormal Functioning

Patterns of behavior, thought, or emotion considered to deviate significantly from what is typically observed or expected.

Psychological

Pertains to the mind and emotions, often relating to mental processes and wellbeing.